February 10, Geely Automobile (0 175. HK) announced that the management of the company is holding preliminary discussions with the management of Volvo Car AB Company ("Volvo Car") to explore the possibility of restructuring through the business merger of the two companies.
Geely Automobile said that becoming a powerful global group will achieve synergy between cost structure and new technology development to meet future challenges. But it will still retain the uniqueness of Geely, Volvo, Link and Polaris. The reorganized new group will connect with the global capital market through the listed entity of Hong Kong Geely Automobile, and the next step will be to consider listing in Stockholm.
As of the date of announcement, Geely Automobile and Volvo Automobile have not worked out a specific timetable or detailed plan for the proposed transaction. However, the two sides will set up a joint working group, and Hanken Samuelson, President and CEO of Volvo Car Group, will coordinate the working group to evaluate this strategic opportunity, formulate a restructuring plan and submit it to the boards of directors of both sides for consideration.
Hanken Samuelson, President and CEO of Volvo Car Group
It is worth noting that the announcement coincides with the tenth anniversary of Geely's acquisition of Volvo Cars. 20 10 On March 28th, under the background of the global financial crisis, Geely Automobile, an independent car company in China that was still unknown at that time, spent $6,543.88+0.8 billion to acquire Volvo Cars, a Swedish luxury car manufacturer.
Nearly 65,438+00 years have passed since this date. From the beginning, Geely has become the leader of domestic automobile brands, and Volvo's global sales have repeatedly broken records.
According to the data, Geely Automobile achieved 65,438+0,362,000 vehicles in 2065,438+09, maintaining the sales champion of China automobile brands and steadily increasing its market share.
At the same time, the sales volume of Volvo Cars in 20 19 also exceeded 700,000 vehicles, and the turnover reached SEK 274 1 100 million, an increase of 8.5% compared with 20 18. In terms of market value, Volvo has now reached about $654.38+08 billion. Compared with Geely's acquisition of Volvo from Ford for $65.438+08 billion, its "worth" has increased by 654.38+00 times.
As far as the domestic market is concerned, Volvo has also achieved rapid growth in sales. In 2065,438+09, the cumulative sales volume reached 654,338+054,000 vehicles, up 65,438+08.7% year-on-year. At the same time, Volvo also has a bright performance in the North American market. Sales in the US market exceeded 65,438+00,5438+for the first time. It is particularly worth mentioning that although Geely has achieved 65,438+000% holding of Volvo Cars, the cooperation between the two parties is based on the principle of equality, and the cooperation in the fields of R&D, procurement, powertrain and manufacturing has been gradually strengthened and achieved results. Both sides have achieved "better self" and become a model for the coordinated development of the industry.
In an internal communication letter to employees, Geely Holding Group said, "Next, Geely Automobile will gain a higher market share in China and accelerate its global development. Volvo Cars should further consolidate its position in the European and American markets, further strengthen the development of Asia and other markets, and continuously improve the cost structure. "
However, Geely's acquisition of Volvo in 10 was not "smooth sailing". Taking 20 18 and 20 19 as examples, the passenger car market in China rarely experienced a year-on-year decline for two consecutive years. In addition, the domestic and international automobile markets are facing major changes in the "new four modernizations", and major automobile enterprises are undoubtedly facing enormous challenges.
Before considering the merger of the two businesses, the cooperation between the two sides has achieved many important results. 20 17 In August, Zhejiang Geely Holding Group, Geely Automobile Holding Co., Ltd. (HK0 175) and Volvo Car Group also formally signed an agreement at Geely Automobile Hangzhou Bay R&D Center to establish Kelin Automobile Joint Venture and Geely-Volvo Technology Joint Venture. According to the share ratio of 50: 50, the technology joint venture company has realized cutting-edge technologies in the fields of vehicle architecture technology, efficient and clean powertrain and so on through mutual authorization. It can be said that the birth of a brand-new high-end sub-brand Kelin is a brand-new exploration of the cooperation mode between Geely and Volvo, and it is also Volvo's "feedback" on Geely's technology.
On 20 17 12, Geely Holding Group announced that it had acquired 8.2% equity of Volvo Group and became its largest shareholder. 2065438+The delivery was officially completed in June 2008.
20 19 10, Geely Holding Group announced that Geely Automobile and Volvo Car Group are exploring the possibility of merging their engine businesses, aiming at establishing a world-leading powertrain division, developing and producing leading powertrains and hybrid power systems.
Looking back on Geely's acquisition of Volvo today, I admire Li Shufu's courage and strategic vision even more. Standing at the time node of 10, we may wish to wait and see what kind of "deep water area" Geely and Volvo will enter.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.