[ Juxun Wang reported ] 2020 February 10, Geely announced that the company’s management are preliminary discussions with Volvo AB’s management, business integration plan between the two sides, in order to set up a global enterprise groups. After the reorganization of the new business group will be to achieve docking with the global capital markets through Hong Kong listed Geely Automobile body, the next step will consider listing in Stockholm.
Geely Holding Group Chairman Li Shufu expressed: ldquo; After the reorganization of the new business group will be stronger, more competitive. We will ask President Volvo Group, CEO Hanken middot; Samuelson coordination working group to assess the restructuring opportunities, synergies within the Group sustained reinforced expectations, while maintaining its unique brand positioning, competitive advantage will be further highlighted. rdquo;
aspects of Volvo, said the strong combination to promote the two sides deepen cooperation in technology research and development more efficient, cost control and financial synergy. By restructuring, the two sides will be more advantages of scale and have greater expertise and resources to continue to lead the industry changes.
At the same time, the integration of the new group will continue to maintain its Volvo Cars, Geely Automobile, car collar grams, very magnitude brand’s unique positioning.
Up to now, Geely Automobile and Volvo has not made a decision, there is no clear timetable for the development. Geely Automobile and Volvo would set up a joint working group, Mr. Li please Samuelson coordination working group to assess the strategic opportunity to develop restructuring proposal, submitted to both the Board of Directors.
Volvo Cars and Geely Automobile on the restructuring terms of the agreement, both sides will report to the board of directors and shareholders approval. After obtaining regulatory approval, the transaction will depend on prevailing market conditions and in accordance with the provisions of the Hong Kong Stock Exchange.
Geely Automobile has made 1.362 million in 2019 sales, is China car sales champion brand, market shareSteadily. Volvo Cars 2019 sales have exceeded 700,000, a turnover of 274.1 billion kronor, an increase of 8.5 percentage compared with 2018.
aspects of Geely Automobile said that since the acquisition of Volvo Cars, the two sides to strengthen research and development, purchasing, powertrain, manufacturing and other areas of cooperation, and achieved fruitful results for both sides sustained and healthy development laid a solid foundation, the industry has also become a model for collaborative development. Then Geely Automobile to achieve a higher market share in China, and accelerate the development of globalization. Volvo Cars to further consolidate its market position in Europe and America, Asia and other markets to further strengthen development efforts continue to improve the cost structure. Combining the strengths of the two companies will further benefit both sides, and further demonstrates the advantages of scale, greater integration of expertise and resources, continued to lead the industry changes.
At present, Geely Automobile Holdings Group brands increasingly growing, not only has auspicious, leading grams, geometry, Ruths, Proton and other brands, last year set up smart and Mercedes-Benz global joint venture, co-operation to promote the smart brand development of.