Geely's real gorgeous turn should have happened 10 years ago, when it bought Volvo for1200 million. From now on, Geely's move is right, is it a loss or a profit?
The answer is yes, Geely played a good game of chess and made a lot of money!
In fact, Geely is lucky to acquire Volvo. As many people know, as early as 1999, Ford bought the bankrupt Volvo car business for 6.5 billion yuan. But after Volvo followed Ford, it did not become bigger and stronger. On the contrary, Ford lost a lot of money on this, so Ford wants to sell this "hot potato" and sell some money.
At this time, Geely Li Shufu took a fancy to the business opportunity and decided to buy it. However, Geely at this time is a small role in front of Volvo. It is not famous and can't afford to spend that much money. In order to acquire Volvo, it also bears huge debts. Because of this, many people are not optimistic about Geely's acquisition of Volvo. After all, Geely's acquisition of Volvo is a bit like "snake swallowing elephant" or even climbing!
Indeed, after the acquisition of Volvo, Geely found that this "elephant" was not so easy to swallow, and the technology could not be used directly. Because before this, many of Volvo's technology patents were linked to Ford, Geely obviously could not use them directly. Therefore, in order to get Volvo's technology, Geely has thought of many ways, such as setting up joint ventures and technology research and development companies, so as to learn Volvo's technology in a justified way.
It was not until six years later that I felt that buying Volvo had played some role and was mentioned again. That is the establishment of the Lectra brand, and this year, the sales of Geely Automobile soared like a helicopter. However, we can still find that Geely Automobile is actually Geely Automobile and does not use Volvo's advanced technology. So what did Geely get? Is it just an increase in sales? No, the increase in sales is only a result of profit!
1, popularity increased
Before the acquisition of Volvo, Geely Automobile was a "nobody" in the automobile circle. The acquisition of Volvo made Geely appear in front of consumers. After the acquisition, Volvo's value rose because of its endorsement. However, it is clear to all that Geely Holding Group, not Geely Automobile, acquired Volvo.
2. Technology upgrading
As I said before, despite the acquisition of Volvo, Geely cannot directly use Volvo's technology, but Geely can learn! It's kind of like leaning against a big tree to enjoy the cool. It is precisely because of this relationship that Geely has the opportunity to learn more advanced technology, thus enhancing the product strength of Geely Automobile!
3, the change of enterprise management concept
Many people know that 10 years ago, the management concept and operation concept of domestic car companies were immature. But brands like Volvo have very perfect business management plans. It is by learning this set of mature management concepts that Geely Automobile can achieve a breakthrough in a short time and connect with the international community!
Write it at the end
So from the results, Geely's acquisition of Volvo is definitely profitable. Although Geely Automobile is still Geely Automobile and Volvo is still the original Volvo, there is a relationship between them-brother car companies, since they are a family, it is normal to help each other. Because of this, people who buy Geely cars think they have bought a Volvo with a new label, so forget it! The quality and technical improvement of Geely Automobile is certain, but there is still a certain gap with Volvo!
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.