Recently, according to Texico report, China Geely Motor Company and Sweden Volvo Motors announced that they will cancel the merger plan, but will continue to work closely. Then, why is it merged?
Does Geely have been acquired Volvo? What should I merge?
Many people may have questions. Is Geely I have already acquired Volvo? Why is it necessary to merge? In fact, the acquisition and merge is not a matter. The acquisitions and mergers between the automakers are normal, just like the Indian Tata Motors acquire Jaguar Land Tiger. But the two companies in Tata Motors and Jaguar Landsicks still remain independent and have not truly mergers. Therefore, the Tata of India did not enhance their own automobile manufacturing capabilities because of the acquisition of Jaguar Landsicks.
The merge means that the two companies will become a real company. Both parties will be realized in technology.
What does it mean for Geely? 
Geely Automobile and Volvo, in fact, it is more than a year ago, the personal idea of Li Shufu, the chairman of Geely Auto. If the merger, the benefits are very large for Geely cars. First reflected in the company’s market value, Jili wants to include Volvo into the Giry Automobile Hong Kong listed company, and consider listed in Swedish Stockholm, if the merger is successful, Geely will become the highest market value of the China Automotive industry, Geely Motor can also achieve true meaning The international automotive group.
Secondly, after the two companies merge, Geely cars can use Volvo’s existing resources. For example, it is recommended to promote the Glike brand to the world, for example, in the future, the Volvo spa platform will be used to make a car.
The third is to further integrate the two parties in the power assembly, pure electrical architecture, automatic driving, overseas channels, will be further Reduce the R & D and manufacturing cost of the car. At present, there are many brands of Geely Automobile, and the collaboration between various car brands is not very deep.In addition, this has caused high research and development and production costs. Geely Motors also want to learn the way of the public, through several platforms, connect all car brands together, reduce R & D costs, reduce production costs.
Now, the two sides will cancel the comprehensive cooperation to turn to the business depth cooperation. The relationship between Geely and Volvo still keeps Geely to acquire Volvo, Geely is Geely, Volvo is Volvo, and the two parties maintain existing corporate architecture, independent operation .
For these two brands, it is advantageous to have a disadvantage.
The benefits are Geely and Volvo not affecting the brand image because of the merger. There are already many netizens who have merged, Geely, if they merge with Volvo, then Walvo’s brand image will be further reduced, which gives the original brand image. Walvo snow. And now Volvo can still keep the second line of luxury brands, the position of the head.
But Geely and Volvo merge failure, the disadvantages are also very much. The first is that Geely Cars wants to get higher-end technologies from Volvo, which may still have some obstacles. At present, although Geely and Volvo have developed CMA platforms, it is limited to both parties. Some high-end technologies that Volvo currently have it may not be easy to use.
The second is to fill the cost of further reducing costs. On the other hand, Geely Automobile is working hard to expand new brands. On the other hand, there is not very close, this is not very close to the future of Geely Auto. Development is also unfavorable. What will the extent of this cooperation from the parties in cooperation? Walvo is willing to take it out to Geely use it? This will be a long-term question in the future.