What changes will Geely's acquisition of Volvo bring to China's automobile industry and what is its significance?

It is not easy for Geely to develop step by step. This marriage with Volvo is not perfect, but it is a wise move. The acquisition of this internationally renowned brand with profound technology accumulation will completely change the image of China's own brand as an "imitation" and "cottage" overseas. As far as China's automobile industry itself is concerned, independent automobile enterprises are bathed in the east wind of China policy, undertaking the transfer of the international market and planning for the new development of the automobile industry. China automobile industry began to move towards a virtuous circle, operating a multi-brand strategy and enhancing the market's ability to resist risks. Geely's acquisition of Volvo is a small step in itself but a big step for China's automobile industry, and its significance has gone beyond the transaction itself. Geely's acquisition of Volvo completed the redemption of China's automobile dignity. For many years, China Automobile has been criticized for blindly pursuing low prices while ignoring high quality, lacking long-term technical planning, and focusing more on market-oriented projects. Most enterprises' technological innovations are mainly concentrated in non-core technical fields. Many technologies, such as materials and combustion, are time-consuming and costly, but they are beneficial to the long-term development of enterprises. Automotive electronic technology and its application, new environmental protection materials, new energy and other basic research capabilities that support the "backbone" of independent innovation of enterprises are very weak, and there is no dignity in making cars in China in terms of innovative technologies. Ford spent $6.45 billion on Volvo, and later invested several billion dollars. In addition, Volvo has formed a rich technical accumulation of more than $654.38 billion. Geely's acquisition can complete the inheritance, innovation, breakthrough, application and development of core technologies in a short time, and break the image of "imitation". China's independent automobile enterprises have obtained a ready-made high-end product in mass production, while China Automobile has a high-end product. It has greatly shortened the time to build high-end brands, and in a certain sense, it is on an equal footing with multinational companies. More importantly, the acquisition of enterprises and products like Volvo will greatly promote the upgrading of automobile technology and enterprise management in China. China automobile enterprises built decent cars, and then made consumers feel that it was a decent thing to ride their own brand cars. In front of the car, it is equal, homogeneous and the same price, and does not discriminate against independent brands. It can be said that Geely's acquisition of Volvo completed a redemption of China's automobile dignity. Geely's acquisition of Volvo has enabled China automobile enterprises to enter the substantive stage of multi-brand strategic operation. Once upon a time, our Chery and Geely built their own product platforms with their own brands in China, and gradually solved the problem of capturing different market segments with different models. However, with the increase of platforms, homogenization competition is inevitable. Geely's acquisition has completed the original accumulation of implementing multi-brand strategy. From the original product-oriented network marketing form to sub-brand marketing, and then to multi-brand strategic layout, a new synergy has been formed. Within the same company, different brands can also enjoy some technical platforms, such as Passat (Gallery Forum) and Audi A6 (Gallery Forum), which have a high proportion of * * * parts, thus effectively reducing manufacturing costs. Geely uses Volvo's platform to improve product quality, and Volvo absorbs Geely's experience in cost control to achieve complementary advantages, and then launches strategic models in various market segments to complete the strategic layout of multi-brand operation and improve China. Independent brands actively adopt multi-brand strategy, which indicates that China automobile market has entered the strategic era of multi-brand marketing. The practical significance of Geely's acquisition of Volvo itself lies in the earlier realization of the plan of having five technical platforms, 15 product platform and more than 40 models distributed among the three brands of Global Hawk, Emgrand and England. Geely's acquisition of Volvo is a challenge to the "3+X" layout of China's automobile industry, and the three major groups may launch new industrial agglomeration competition driven by Geely's acquisition of Volvo. While other automobile groups are bound to be involved in a new wave of mergers and acquisitions, the Second Corps like Geely can completely complete the second merger and become one of the big groups. In recent years, China will completely solve the current situation of scattered and chaotic domestic automobile industry, and will complete the scale reorganization of the automobile industry ahead of schedule. It is a mystery who will be the first among the top ten automobile groups in the world, but the time to enter the "Top Ten" will definitely be shortened. Geely's acquisition of Volvo completed the transformation of its own brand, which made China's automobile industry move from product competition to brand competition. The carrier of independent brand is not so much automobile products as automobile independent brands. Independent brand is an indispensable prerequisite for improving the ability of independent development, and the establishment of independent brand is a necessary condition for improving the ability of independent development of automobiles in China. In the past ten years, China automobile industry has taken a road of "exchanging market for technology". While the market is completely divided by foreign automobile brands, the exchanged technology has never been put on the table. We only shared a small part of the development of the automobile industry. According to the negotiation between the two parties, Geely will own 100% Volvo brand, and acquire 9 series products such as Volvo Cars, 3 latest platforms, more than 2,000 global networks, relevant talents and important supplier systems. This is a thoroughly remoulded promotion of Geely brand, which is not only the extension of product line, the renewal of platform and the expansion of channels, but also the key to its high-quality talents, the core of keeping product quality and competitiveness by following patented technical knowledge, and the key for China automobile industry to adapt to the trend from product competition to brand competition. Geely's acquisition of Volvo opens a new era of automobile safety in China. For many years, China's automobile manufacturing has been faced with the embarrassment that the automobile safety star rating does not match the image of a big automobile country in international collision safety, and the result of star rating also directly affects the sales of self-owned brands. Volvo Cars enjoys a high reputation in Northern Europe for its excellent quality and performance, especially in the safety system. Volvo invests a lot of money in product research and development in safety every year, and constantly criticizes its achievements. Safety cars in the 1940 s, three-point seat belts in the 1960 s and anti-side collision protection systems in the 1990 s. In recent years, Volvo has won many awards, such as Prince Michael Road safety award, European Collision Four-Star Award, British Touring Car Championship and so on. The American Institute of Highway Loss Information once selected the top ten safest cars, and Volvo topped the list. Behind the honor is the support of good quality and excellent safety performance. This acquisition enables Geely to inherit its unique technology in the field of safety and produce the safest "Made in China" in the world, which not only changes the image of China automobile, but also opens a new era of automobile safety in China, which is also of great significance to the promotion of automobile safety in the mainland. With the strengthening of national policies, enterprise merger and reorganization is the general trend. At present, the strength of "foreign brands" has not been fully exerted, and there are many opportunities for the development of independent brands. In the next few years, independent brands will enter a period of deep adjustment. With the rise of joint ventures and the blowout of the automobile market in China in the past 50 years, Geely's acquisition of Volvo has changed China's independent "sad" role, which indicates that China's independent brands will start to find their own best development model and gradually mature. This marriage is a small step for myself and a big step for China's automobile industry.