provide enough information for the Chinese company to Leading Cross-border Acquisitions in progress as quickly as it wanted. believed that Emerging Markets: Geely’s Purchase of acquiring a company was the best option because they , 2010-2015 1 could purchase the skills of the target. Volvo was a desirable target because the Swedish firm was the epitome of quality and safety, with strong skills and a stellar global reputation.

Ford had purchased Volvo AB’s car operations in 1999, after Volvo had suffered several years of losses. Volvo did not thrive within Ford, even before the financial crisis. The financial crisis that began in 2008 caused Volvo sales to plummet since they had few models and their sales correlated highly with the economy. For 2009, Ford reported that the Volvo unit had an operating loss of $934 million on sales of $12.4 billion. More generally, Ford was feeling the effects of the financial crisis and CEO Alan Mulally decided to focus on their core brands rather than propping up struggling brands such as Volvo and Jaguar (JLR). As a result, Ford sold JLR to in 2008 and Volvo to Geely in 2010.

Geely purchased Volvo Car at a substantial discount from Ford’s purchase price. Geely paid $1.3B in cash and $0.5B in stock; Ford had paid $6.45B for the company 10 years earlier.2 Geely also was rumoured to be considering purchasing the struggling , the unsuccessful manufacturer of the Karma plug-in hybrid Geely Holding Group Chair Li Shu Fu and . Fisker eventually was purchased out of Volvo CEO Stefan Jacoby look at each other during the bankruptcy for about $150 million by ’s Volvo Car China Business Strategy Launch in on Group, an auto components producer, in 2014. February 25, 2011 (photo credit: Reuters/Christina Hu) Post-Acquisition Goals Acquisition: Geely (China) Buys Volvo Car At the time of the purchase, analysts anticipated that Geely’s acquisition of Volvo Car from Ford in 2010 was Geely would rapidly integrate Volvo and use the the Chinese firm’s strategy to enter the luxury automobile for Geely models. Instead, Volvo market. Geely was commonly viewed as a relatively low initially continued to operate independently, under new quality vehicle producer, especially by consumers outside leadership. The new CEO of the Volvo subsidiary, Stefan China. The perception of low quality, which was a Jacoby, joined in August 2010. Jacoby came to Volvo common foreign view of many Chinese automobile from a position as CEO of of America. producers, was hindering Geely’s goal to expand abroad. The company required knowledge of the automotive At the outset, the deal seemed to offer opportunities for industry and , to improve quality more both companies. Since Volvo has a longer history and quickly than they were currently doing on their own. strong expertise, the acquisition meant that Volvo would share knowledge of the with Geely. Among the build, borrow, buy options to fill Geely’s In turn, Geely would provide capital and share knowledge resource gap for the luxury market, an acquisition strategy of Chinese consumers with Volvo. dominated. Building internally would take exceptionally long without external assistance. A where When Volvo was owned by Ford, executives indicated Geely would borrow through an alliance would not that Ford required substantial reporting in terms of sales and marketing, while Volvo received little investment for R&D. Within Geely, Volvo gained access to increased 1 The note is based on a report by Jesse Mackewn, with updates by Will Mitchell, Rotman School of Management (April 2015). 2 http://www.bloomberg.com/news/articles/2010‐08‐02/geely‐said‐to‐ announce‐completion‐of‐volvo‐‐purchase‐from‐ford‐today 1

funding to develop new products such as improved The disagreement about goals reflects different market platforms, small and more efficient turbo dual electric perspectives. Samuelsson believes that changing Volvo’s assist engines, and Chinese market-specific innovations course to compete directly with BMW and is risky such as the long body and passenger airbags3. because they would be giving up a niche they have cultivated over many years. By contrast, Geely’s Chinese Post-Acquisition Challenges leadership sees strong opportunities for growth in China.

The post-acquisition strategy has faced challenges. In early 2014, reports indicated that Volvo’s management Recurring differences of short-term and long-term strategy was better aligned with Geely’s vision for the strategic vision have plagued the two management company. Volvo is now attempting a strategy that seeks cultures and have slowed the progress of the venture. growth in China for longer term investments, while continuing to emphasize Volvo’s established markets of Limited growth: After being taken over by Geely, Volvo and North America as shorter-term targets. 7 In sought to more than double its annual global sales to June 2014, Volvo introduced a redesigned, larger, and 800,000 cars by 2020, from 373,000 in 2010, and become more upscale, long wheelbase Volvo S808. Reports that a stronger global luxury auto brand. But Stefan Jacoby Samuelsson would be replaced have subsided. reported that Volvo was unlikely to meet its goal to sell

200,000 cars a year in China by 2015. Volvo sold about Technology transfer: During his time as CEO, Stefan 47,000 cars in China in 2011 and was likely to sell Jacoby sought to protect Volvo from Geely obtaining its 45,000-46,000 in 2012, he forecast. Volvo reported a net technology. 9 Indeed, commentators noted that “Mr loss in the first half of 2012 as the euro zone crisis dented Jacoby’s resignation is likely to be greeted with some sales in Europe. disappointment at Volvo where he had become liked by Executive turnover: In September 2012, Jacoby was staff for his love of cars and his unwillingness for Geely replaced at Geely by Hakan Samuelsson, the previous to get its hands on too much of the Swedish group’s CEO of German manufacturer MAN SE. Reports technology.” Geely, of course, believes that it has a right indicate that Jacoby, left Geely after disagreements about to the technology, because it owns Volvo. strategic alignment with Geely’s chair, Li Shu Fu, and Hans-Olav Olsson, the former CEO of Volvo who was More active technology sharing between Volvo and began acting in an advisory role as Vice Chair of Volvo. Jacoby in 2013. In its 2013 annual report, Geely noted that now serves as Executive Vice President and President of cooperation with Volvo Car was now on track to achieve GM International Operations (GMIO) at . the company’s purpose of improving product quality and strengthening competitiveness. In September 2013, Geely Design and market positioning: Jacoby wanted Volvo to created an independent research and development centre continue the heritage of safety and Swedish style whereas called CEVT (China-Euro Vehicle Technology) located in Li Shu Fu wanted to create large, flashier high-end cars to Lindholmen Science Park in Gothenburg, as the compete directly with BMW, Mercedes, and Audi. 4 platform to facilitate the cooperation. Jacoby also wanted to pursue the U.S. market more aggressively and establish a North American plant in In 2014, CEVT was staffed by 200 resident engineers. Its with another manufacturer, while Li Shu Fu first task was to develop a new modular architecture and wanted to emphasize growth in China.5 set of components for future C-segment cars, addressing the needs of both Volvo Car and the Geely Group. The Questions about Volvo’s strategic direction have modular strategy seeks to deliver on premium aspects for continued under new CEO Hakan Samuelson. Li Shu Fu Volvo as well as the Group’s broader needs in the has complained that the current execs are only meeting his automotive market. Geely’s goal for the modular wishes half way. Similar to Jacoby, Samuelson at least architecture is to deliver world-class product technologies, initially viewed the U.S. & EU as Volvo’s focal markets, while saving development, testing, and sourcing costs. while Li Shu Fu continues to want to emphasize the Chinese market.6 Leadership conflict: Strategic differences also appear to have arisen between Jacoby and Hans-Olav Olsson, a former CEO of Volvo (from 2000 to 2005, after serving at

3 http://www.ibtimes.com/volvo‐execs‐explain‐swedish‐carmakers‐relationship‐geely‐its‐ chinese‐owner‐volvo‐working‐its‐own 4 http://www.autonews.com/article/20121022/OEM02/310229814/why‐jacoby‐was‐ ousted‐at‐volvo?‐one‐theory 7 http://www.ft.com/intl/cms/s/0/acaf843a‐a924‐11e3‐9b71‐ 5 http://www.motorauthority.com/news/1073971_volvo‐latest‐to‐eye‐north‐american‐ 00144feab7de.html#axzz3SX4KDARK plant 8 http://in.reuters.com/article/2014/01/16/autoshow‐volvo‐idINDEEA0F0GZ20140116 6 http://www.autonews.com/article/20140127/GLOBAL03/301279940/at‐volvo‐ 9 http://www.ft.com/intl/cms/s/0/23919bce‐19c5‐11e2‐a379‐ tensions‐said‐to‐be‐rising‐on‐the‐sweden‐china‐border 00144feabdc0.html#axzz35kfOOILw 2

Volvo since 1966 10 ). Olsson was brought in to “keep vehicle technology as part of a gradual transition from Jacoby on his toes” at the new Volvo. Insiders indicated hybrid to pure electric technology. that the poor relationship between the two impeded a quick turnaround of Volvo.11 In parallel, the Geely Group is undertaking substantial restructuring of production, marketing, and sales activity. Disagreements arose about the roles that the board and The global vehicle market grew from 87.5 million executive management should take. Jacoby saw the vehicles in 2013 to 90.1 million in 2014, while total executive management team as the core decision-making production in China grew from 22.1 million vehicles in group, with the board providing oversight. By contrast, 2013 to 23.7 million in 2014. However, Geely’s sales Olsson believed the board should have more direct declined substantially in 2014, which the company influence over the decisions of the company. 12 Some attributed to domestic preference for joint venture brands, reports also suggest that the conflict began when Jacoby as well as political instability in some of its export refused to promote Olsson’s son in law to head of sales, markets and to weakening of global currencies relative to marketing, and customer service at Volvo. the U.S. dollar and Chinese yuan.

Location: Jacoby wanted Volvo to remain in Sweden, whereas Olsson believed that the head office and production should be located in China.13 In 2011, Jacoby indicated that manufacturing in China was one way to make cars cheaper relative to the U.S., owing to currency exchange and more expensive manufacturing in Europe.14 Nonetheless, Jacoby believed that it would be a mistake for Volvo to manufacture automobiles in China for export to the U.S., owing to production challenges and consumer perceptions of quality in China.

Status: Early 2015

Volvo is now shifting production to China. In January 2015, Volvo announced that it hoped to start exporting the S60 model to U.S. in the summer of 2015. This strategy parallels , which currently manufactures its FIT in China and exports it to Canada. 15 Volvo expects most vehicles to include 75% Chinese parts within two years. The company is expecting China to be Volvo’s production hub for South East Asia 16 . As part of the transition, Volvo is transferring a factory in , China which has been used for the manufacture of high end SUVs and sedans to Geely.17

Geely is seeking to grow in the market. The company has had a joint venture with Kandle Electric in China and is planning a second joint venture with additional partners. As part of this initiative, Geely plans to leverage Volvo Car’s technology hybrid electric

10 https://www.media.volvocars.com/global/en‐gb/media/pressreleases/33404/hans‐ olov‐olsson‐vice‐chairman‐of‐the‐board‐of‐directors‐volvo‐car‐corporation 11 http://www.reuters.com/article/2012/10/02/us‐volvocar‐conflict‐ idUSBRE89105O20121002 12 http://www.reuters.com/article/2012/10/02/us‐volvocar‐conflict‐ idUSBRE89105O20121002 13 http://www.reuters.com/article/2012/10/02/us‐volvocar‐conflict‐ idUSBRE89105O20121002 14 http://www.cbsnews.com/news/us‐volvos‐made‐in‐china‐a‐bad‐idea‐ceo‐stefan‐ jacoby‐needs‐to‐fight/ 15 http://www.ft.com/intl/cms/s/0/cf6b9e68‐9a6a‐11e4‐8426‐ 00144feabdc0.html#axzz3SX4KDARK 16 http://www.ft.com/intl/cms/s/0/acaf843a‐a924‐11e3‐9b71‐ 00144feab7de.html#axzz3SX4KDARK 17 http://www.forbes.com/sites/russellflannery/2015/02/08/chinese‐billionaire‐owner‐ of‐volvo‐to‐sell‐suv‐plant‐to‐hong‐kong‐listed‐geely/ 3

Geely Background  2007: Geely shipped 300 knocked-down kits to for its first overseas assembly line. Zhejiang Geely Holding Group Co., Ltd is a Chinese  2008: Geely unveiled safety technology BMCS automotive manufacturing company headquartered in (Blow-Out Monitoring and Control System) at the . Its principal products are automobiles, North American International Auto Show. The Panda motorcycles, engines, and transmissions. Founding Geely car (Geely LC) went on sale. in 1986 as a refrigerator-maker with money borrowed  2009: Geely bought ’s maker, from family, Li Shu Fu transformed the company into an DSI. brand was launched as the EC7 rolled automaker selling inexpensive products in China. Geely off the line in Ningbo, Zhejiang. was one of the first private Chinese automakers, along with BYD Auto and . Geely had an  2010: Geely bought Volvo Car. Emgrand EC8 IPO on the Stock Exchange in 2004. hit the market.  2011: Geely opened Volvo Car’s China headquarters Geely has gradually moved up the vehicle chain. After and technical center in . purchasing a struggling state-owned firm, Geely  2012: Geely’s first SUV, the Gleagle GX7. manufactured motorcycles in the mid-nineties. The  2013: Geely took 100% control of MBH; Geely company began small production in 1998 and began opens an R&D center in Sweden. car production in 2002. Geely initially produced lower quality vehicles, based on Geely Stock Trend, 2005-2015 the Daihatsu Charade, which started at less than US$8,000. The company diversified its offering when it purchased Shanghai in 2002 and began transitioning into a mid-priced manufacturer by introducing higher quality vehicles including the Gleagle ($6,000 to $14,000) and the Englon ($13,000 to $24,000), as well as an electric sedan in 2008. Geely approached Ford in mid-2008 about a takeover of Volvo Car. A deal was reached in March 2009 and completed in August 2010. Geely’s quality has improved over time. In 2012, the company placed among the top Chinese manufacturers in the JD Power IQS and APEAL rankings. Geely Vehicle Sales (units), 1998-2014 Geely Geely Market auto auto Market Share: Geely has grown rapidly within China. In 2013, it was the Share: production exports China passenger #4 domestic company. Its 2013 production of 970,000 China (excludes (excludes vehicle exports sales vehicles (including Volvo) was about half the level of the Volvo) Volvo) #1 company, SAIC. 2014 417,851 59,721 11%

2013 540,000 118,871 20% Geely Timeline (http://chinaautoweb.com/auto-companies/geely)  1996: Li Shu Fu, who previously made metal parts 2012 483,483 3% 101,908 15% and motorcycles, founded Geely Group. 2011 432,000 2% 39,600 13%  1998: The first Geely vehicle, a Haoqing 2010 415,843 2% 20,555 11% van, rolled off production line in , Zhejiang. 2009 330,275 2% 19,350 19% The Haoqing was based on a Daihatsu Charade 2008 220,955 2% 37,940 15% platform, which Geely licensed from FAW . 2007 216,774 2% 21,000 12%  2001: Geely acquired a government permit for 2006 207,149 2% 10,000 10% manufacturing passenger cars and began producing 2005 149,532 2% 7,000 5% vehicles in 2002.  2003: Zhejiang Geely Holding Group founded; 2004 91,774 2% 4,846 5% started delivering cars to overseas markets. 2003 76,274 2% 500 1%  2005: Geely became listed in Hong Kong and 2002 47,800 1% attended the Frankfurt motor show. 2001 21,000 1%  2006: Geely, Shanghai Maple, and MBH (Manganese 2000 8,000 0.4% Bronze Holdings, in the UK) agreed to build the 1999 2,000 0.1% London Taxi in China. 1998 200 0.01%

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Volvo Car Background Volvo Car Financial Trends Revenue COGS R&D Employees ROS Volvo Car Corporation is a Swedish premium automobile ($ mln) % % manufacturer, headquartered in Gothenburg. Volvo is now owned by Zhejiang Geely Holding Group of China. 2014 24,142 $15,573 83% 5% 0.6% Volvo was founded in 1927, originally as a subsidiary of 2013 23,250 $14,649 83% 5% 0.8% the ball bearing maker SKF. When Volvo AB was 2012 22,000 $14,924 84% 5% -0.4% introduced on the Swedish stock exchange in 1935, SKF 2011 21,512 $15,060 83% 4% 0.8% sold most of its shares in the company. was owned by Volvo AB until 1999, when it was acquired by 2010 19,494 Within Operating the . Geely Holding Group acquired Ford income Volvo Cars from Ford in 2010. 2009 19,650 $12,356 -7.6% Volvo Car manufactures and markets sport utility vehicles, station wagons, sedans, compact executive 2008 22,732 $14,700 -11.5% sedans, and . Volvo cars have long been marketed 2007 24,384 $17,800 4.2% on the basis of their reputation for safety and reliability. Note: 2010-2014 revenue converted from SEK at 0.12/$. Even prior to strong government safety regulation, Volvo had been at the forefront of safety engineering. Volvo Car Unit Sales Assembly plants Units W. Sweden China US Other  Torslanda, Sweden, since 1964 sold Europe  Ghent, Belgium, since 1965  Kuala Lumpur, , since 1967 (left hand drive) 2014 465,866 13% 39% 17% 12% 18%  , China, since 2009 2013 427,840 12% 39% 14% 14% 19%  , China, since 2013 2012 421,951 12% 42% 10% 16% 20%  , China, since 2014 2011 449,255 13% 43% 10% 15% 18% Component plants 2010 373,525 14% 47% 8% 14% 16%  Skovde, Sweden (engines)  Floby, Sweden (engine components, brake discs) Before  Olofstrom, Sweden (body components) Ford  Zhangjiakou, , China (engines) 1999 407,000 1998 399,000

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Production and Quality of Chinese Vehicles IQS: Chinese versus international vehicles

900 Initial Quality Study (Problems / 100) As recently as the late 1990s, the Chinese auto sector was 800 Domestic relatively small. In 1998, China accounted for only 3% of 700 global vehicle production. Domestic companies produced 600 Gap lower quality vehicles, mainly and buses for 500 industrial use. 400

300 International During the mid 1990s and early 2000s, the motor vehicle 200 sector was targeted as a pillar industry for Chinese 100 industrial development. The government required Expon. 0 international technology transfer from global firms in (Domestic)

return for market access, leading to multiple 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 and joint ventures between Western and Chinese auto

sector firms. In addition, China invested heavily in auto Most analysts project that Chinese vehicle will continue technology development at leading Chinese universities to improve. Nonetheless, even as rated quality of Chinese and research institutes. autos continues to move toward leading international

competitors, it will take time to re-brand Chinese China has now become both the world’s largest auto manufactured products as higher quality vehicles. market and the largest producer of cars. In 2014, 26% of

global auto manufacturing came from Chinese plants,

more than the #2 and #3 countries, the U.S and , combined.18 Indeed, in 2013, 24 of the world’s top 50 vehicle producers (based on unit production) were based in China, while most foreign auto companies also had plants in China, usually joint ventures with Chinese firms.

Despite the high production, Chinese vehicles face challenges in perceptions of quality. JD Power’s Initial Quality Study (IQS) assesses vehicle quality by recording the number of defects per 100 vehicles reported by owners, two to six months after purchase. Higher scores indicate more problems.19

The IQS graph below shows quality scores from 2000 to 2012 for the average rating and then projects to 2018 using a logarithmic trend line. In 2000, there was a large gap in IQS scores between domestic Chinese and international brands: Chinese brands scored 834 problems per 100 vehicles (834pp100), 1.9 times higher than international brands at 438pp100. In 2011, Chinese domestic brands improved to 232pp100, but the difference remained high (1.8 times) because international brands also improved, reaching 131pp100.

18 http://www.oica.net/category/production-statistics/ 19 JD Power & Associates. Vehicle Initial Study. Retrieved from: htcaretp://businesscenter.jdpower.com/news.aspx 6

Geely Financial Trends ($ million) Sales COGS SGA Op. Income Net Income Assets Inventory Employees 2014 $3,505 $2,866 $497 $142 $231 $6,011 $261 18,481 2013 $4,742 $3,790 $574 $378 $440 $5,550 $295 18,138 2012 $3,951 $3,220 $462 $269 $327 $5,034 $292 18,512 2011 $3,326 $2,720 $390 $216 $245 $4,378 $215 17,288 2010 $3,048 $2,484 $362 $202 $208 $3,636 $150 17,102 2009 $2,061 $1,688 $186 $185 $173 $2,754 $94 12,282 2008 $629 $533 $74 $22 $129 $1,488 $71 9,945 2007 $18 $16 $7 -$5 $41 $400 $2 8,813 2006 $16 $14 $3 -$1 $27 $237 $1 9,498 2005 $13 $12 $2 -$1 $14 $111 $1 2004 $4 $4 $2 -$2 $10 $88 $1 2003 $5 $4 $3 -$2 $7 $78 $1 2002 $9 $7 $5 -$3 -$14 $3 $1 2001 $14 $11 $7 -$6 -$13 $73 $2 2000 $8 $7 $5 -$3 -$6 $67 $1 1999 $1 $1 $4 -$4 -$7 $61 $0 1998 $4 $9 -$6 -$10 $53 $14 1997 $17 $47 -$31 -$30 $64 $1 1996 $7 $8 -$1 -$7 $48 $0 1995 $1 $2 -$1 -$2 $35 Geely Geographic Revenue (excludes Volvo) Europe Central & Foreign Middle Other China (mainly Korea (North & South Australia share of East (Asia) Eastern) SSA) America sales 2014 $2,845 $312 $93 $50 $106 $43 . $56 19% 2013 $3,628 $507 $303 $100 $85 $64 $1 $54 23% 2012 $3,097 $285 $329 $110 $35 $49 $4 $42 22% 2011 $3,002 $94 $28 $127 $23 $37 $12 $2 10% 2010 $2,807 $43 $56 $29 $113 8% 2009 $1,957 $57 $8 $13 $25 5% 2008 $509 $67 $52 19% Exports: 2014 2013 2012 2011  At the end of 2014, Geely exported Total units 59,721 118,971 101,908 39,600 vehicles to 35 countries through 38 16,533 12,209 2,829 some exclusive sales agents and 476 sales and 10,037 32,106 24,924 6,500 service outlets. 9,522 6,036  In addition to direct exports of vehicles 4,445 14,548 15,163 3,900 from China, Geely has also assembled 3,508 12,514 4,165 models sold overseas through joint- 3,150 2,909 venture or contract manufacturing Ukraine 3,128 18,810 12,835 8,000 arrangements with local partners in 1,986 1,479 2,664 2,100 Eastern Europe (Russia, Ukraine, 1,554 1,082 1,986 some Belarus), Asia (, , 1,324 Malaysia, Sri Lanka), Africa (Egypt, Algeria 1,169 1,187 ), , and Uruguay. In 2013- 4,229 2,744 2,150 2014, partnerships were active in Iraq 4,203 22,882 3,900 Egypt, Russia, Belarus, Ukraine, Sri Libya 1,019 Lanka, Indonesia, Uruguay, Iraq, and 1,258 1,900 Ethiopia. Some of the partnerships 1,036 2,000 involve technology transfer agreements Others 3,365 6,640 9,422 9,150 from Geely. Countries 35 41 37 52

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Chinese Domestic Vehicle Producers (cars, buses, trucks), 2013

Global partners (current & Company Region 2013 production prior) – Partial list Shanghai Auto Industry Corp GM, VW, SSangyoug, Iveco, Shanghai 1,992,250 (SAIC) Volvo Bus Citroën, Honda, , , Dongfeng 1,238,948 Peugeot, Changan (Chana) Chongqing 1,109,889 , Ford, , PSA Geely (includes Volvo) Hangzhou 969,896 Daihatsu Hyundai, , Daimler, Beijing Automotive (BAIC) Beijing 918,879 Great Wall Heibei 757,564 Suppliers First Auto Works (FAW) Jilin 717,883 VW, , GM Brilliance Shenyang 582,904 BMW Jianghuai (JAC) Anhui 517,577 Navistar BYD 510,590 Anhui 477,166 SEAT Chongqing Lifan Chongqing 245,506 Daihatsu Guangzhou Auto Industry Guangzhou 160,868 Toyota China National Heavy Truck 155,218 Jiangnan Hunan 133,790 Shaanxi 103,524 South East () Fujian 98,787 Fujian 83,150 Guihang Lotus Zhejiang 71,101 Shandong 70,567 Hebei Zhongxing 65,025 Haima Hainan 61,054 57,711 Sichuan Nanjun (Ziyang) Sichuan 45,688 Source: OICA annual surveys

Note: Several Chinese firms have substantially higher production in China when their joint venture production (traditionally sold in China, although now also being exported) is included. For instance, here is the 2010 production of five Chinese groups, including joint ventures: SAIC: 3,620,653; Dongfeng: 2,769,883; FAW: 2,572,260; Chana: 2,378,052; BAIC: 1,504,083

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Auto Production (passenger and commercial): Top 10 Countries (2014), 1999-2014 Production 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 x 1999 Total 90,129,889 87,507,027 84,236,171 79,880,920 77,583,519 61,762,324 70,729,696 73,266,061 69,222,975 66,719,519 64,496,220 60,663,225 58,994,318 56,258,892 China 23,722,890 22,116,825 19,271,808 18,418,876 18,264,761 13,790,994 9,299,180 8,882,456 7,188,708 5,717,619 5,234,496 4,443,686 3,286,804 1,829,953 U.S. 11,660,699 11,066,432 10,335,765 8,661,535 7,743,093 5,709,431 8,672,141 10,780,729 11,263,986 11,946,653 11,989,387 12,114,971 12,279,582 13,024,978 Japan 9,774,558 9,630,181 9,943,077 8,398,630 9,628,920 7,934,057 11,575,644 11,596,327 11,484,233 10,799,659 10,511,518 10,286,218 10,257,315 9,895,476 5,907,548 5,718,222 5,649,260 6,146,948 5,905,985 5,209,857 6,045,730 6,213,460 5,819,614 5,757,710 5,569,954 5,506,629 5,469,309 5,687,692 S. Korea 4,524,932 4,521,429 4,561,766 4,657,094 4,271,741 3,512,926 3,826,682 4,086,308 3,840,102 3,699,350 3,469,464 3,177,870 3,147,584 2,843,114 3,840,160 3,898,425 4,174,713 3,927,411 3,557,073 2,641,550 2,332,328 2,253,729 2,019,808 1,638,674 1,511,157 1,161,523 894,796 818,193 3,365,306 3,054,849 3,001,814 2,681,050 2,342,282 1,561,052 2,167,944 2,095,245 2,045,518 1,684,238 1,577,159 1,575,447 1,804,670 1,549,925 3,146,118 3,712,380 3,402,508 3,407,861 3,381,728 3,182,923 3,215,976 2,977,150 2,611,034 2,530,840 2,317,227 1,827,791 1,791,530 1,350,828 Spain 2,402,978 2,163,338 1,979,179 2,373,329 2,387,900 2,170,078 2,541,644 2,889,703 2,777,435 2,752,500 3,012,174 3,029,826 2,855,239 2,852,389 Canada 2,393,890 2,379,834 2,463,364 2,135,121 2,068,189 1,490,482 2,082,241 2,578,790 2,572,292 2,687,892 2,711,536 2,552,862 2,629,437 3,058,813 Source: http://www.oica.net/category/production-statistics/

Chinese share of Global Vehicle Production, 1999-2014

30%

25% China

20% US Japan 15% Germany 10% Korea 5% India 0% Canada ms99 ms00 ms01 ms02 ms03 ms04 ms05 ms06 ms07 ms08 ms09 ms11 ms12 ms13 ms14 m210

9