Shanghai Automotive and Ssangyong Motor – A Tale of Two Dragons (A)

Leiping Xu (First Author), Steven White (Participant Author)

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Abstract

The case was developed by Research Fellow Xu Leiping of the China Europe International Business School, and Professor Steven White of the School of Economics and Management, Tsinghua University. The case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. The first author was partly supported by NSFC project 71072059 and NSFC project 70901051. Shanghai Automotive (SAIC), one of China's "Big Three" automakers, paid US$571 million in 2004 to acquire a controlling majority share in Ssangyong Motor of South Korea to help SAIC achieve its strategic objectives of developing its own passenger car brand and expanding operations internationally. This first case in the 3-case series covers the decision making leading up to the deal, signed in October 2004 and implemented in January 2005. It provides a basis for comparing modes of growth options (make, buy or ally) and the specific challenges facing Chinese firms and other newly-internationalizing firms as they go abroad. The case also generates discussion of fundamental acquisition issues: target selection, assessment and integration planning.
Original languageEnglish
Pages (from-to)305-327
JournalAsian Case Research Journal
Volume15
Issue number2
DOIs
Publication statusPublished - 2011

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  • ABDC-C

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