CEVT of Geely: a broker and global facilitator between Geely and Volvo Cars

In Chapter 12, Jin and McKelvey (2020) explore the specific strategic roles that a Chinese overseas research and development (R&D) centre can play in a Chinese multinational firm, and they do so by analyzing CEVT as an organization positioned between Geely and Volvo Cars. The development of China Euro Vehicle Technology AB (CEVT), a subsidiary of Geely Auto, shows the specific strategic role and management system of a Chinese overseas R&D centre. Taking the fast growth of CEVT as case, the authors explore the distinguished role of CEVT in Geely after its M&A of Volvo Cars, and the co-development of Geely Auto, Volvo Cars, and CEVT. The analysis suggests that the independent technology firm can work as a broker between bilateral parties in an M&A event at the aspect of new product and technology development as well as the global market strategy. This chapter highlights the important role of the independent technology firm in promoting the co-development of bilateral parties of M&A with a hidden internal technology trade. The analysis has important implications for the global R&D strategy and technological M&A, especially for firms in mature industries from emerging countries.