Global Champions in Waiting ——Prospects and challenges of Chinese Automobile firms M＆A activities on the world stage

In recent years, Chinese companies have accelerated their global activities in line with China＇s ascent as a major economic power. While some Chinesecompanies globalize organically, many others have pursued mergers and acquisitions （M＆A） to accelerate their global presence. High-profile deals such the SAIC＇s 50.6% acquisition of Korea＇s Ssangyong in 2004, Nanjing Auto Group purchased British auto company MG in 2006, and more recent Geely Automobile Holdings acquire＇ Australia＇s Drivetrain Systems Interna- tional, or DSI, the world＇s second largest auto transmission supplier in 2009, have introduced the world to a new generation of Chinese companies with aspirations to be global competitors. Under the circumstance of global financial crisis, as vehicles sales slump and companies burn through cash, many players in automobile industry are confronting cost pressure and tighter access to credit. As a result, many distressed assets are potentially up for sale. This also means opportunities for Chinese automobile players with international expansion to jump onto the global stage.