About money, it is nothing more than how much money to buy and how much to sell, and where does Geely's money come from? We must know that the aftermath of the financial crisis was not completely eliminated at that time, and financial institutions were short of money, making it difficult to lend money. It is said that only Zhejiang Branch of China Construction Bank lent Geely $2 million at that time, which sounds like a lot, enough for us to live for several lifetimes, but it is undoubtedly a drop in the bucket for the acquisition of Volvo.
how did the acquisition fund come from? It relied on the local government financing platform. The Beijing government, which initially reached a cooperation agreement, did not know what happened when it was about to come up with real money. At that time, the negotiations between Geely and Ford entered a new stage. Geely needs to clarify the financing structure before signing the contract. At this stage, the Chengdu government contacted Li Shufu and showed great interest in the Volvo project.
As a result, Geely borrowed from several state-owned institutions in the form of one-year loans, with the Chengdu municipal government as a guarantee and Li Shufu himself as a lifelong counter-guarantee, and successfully raised 3 billion yuan from Chengdu.
No matter how hard the process is, it is finally rich. It should be estimated that it should be around 1 billion. How much did Geely spend to buy Volvo? After many negotiations, Geely's final offer was $1.8 billion, which was more than 8% lower than the previous estimate of $1 billion. Due to the huge changes in the transaction amount, Ford said that it needs to be decided through the board meeting, so the negotiations on the acquisition of Volvo were interrupted for one month.
During this period, Li Shufu personally led a team to Sweden and Belgium, and visited all trade union leaders and relevant government departments successively. After unremitting efforts, finally on March 27th, 21, Geely Volvo Project Team reached a final agreement with the trade union. The day after the agreement was reached, Geely's agreement to buy Volvo was signed in London. A half-meter-high pile of documents was piled on the desk, and it took nearly half an hour to sign one by one.
On August 2nd, 21, in London, England, Geely successfully delivered 1% equity of Volvo Car and related assets, including the intellectual property rights mentioned earlier, and Geely became the first automobile multinational company in China. This means that Geely has the trademark ownership and use right of Volvo cars, 1,963 patents and special intellectual property rights, 1 series of sustainable products and product platforms, the production capacity and good facilities of about 56, vehicles in two major automakers, an engine company and three parts companies, an independent database for vehicle and key parts development, the research and development system and capabilities of 3,8 high-quality scientific research talents, and the sales service network of 2,325 outlets distributed in more than 1 countries and regions. These contents have played a great role in the future development of Geely.
It took Li Shufu three years to set up the "V Project" team in June 27 and formally complete the delivery in August 21, becoming the new boss of Volvo. In an interview with Reuters on the same day, Li Shufu expressed his feelings like this: "We have realized the dream of acquiring Volvo, but this is not our final plan, it is just a new starting point." Indeed, for Geely, the acquisition of Volvo has embarked on a fast road of development, and Geely's today is inseparable from the acquisition of Volvo.
back to now, we have witnessed with our own eyes how Volvo regained its glory step by step under Geely and ushered in the highlight moment; It also witnessed how Geely and Volvo, the crystallization of love, grew up. It's hard to say who made Geely and Volvo, but it's undeniable that they both got what they wanted, that is, * * * won. Well, the story of Geely and Volvo is over here. If you want to hear the story of any other brand, you can leave a message for us. See you next time. Bye-bye ~
This article is from the author of car home Chejia, and does not represent car home's viewpoint.