beyond many people expected, return to work just opened in Beijing on the evening of February 10, Chinese consumers are familiar with the two car brands, issued a a heavy message.
Volvo outgoing messages, quot; Volvo is exploring a business combination and reorganization of Geely Automobile, the intention to become a powerful global groups to achieve synergies and cost technologies to meet the challenge. quot;
If the agreement is reached, the new group after the reorganization will retain the uniqueness of Geely, Volvo, collar and pole star grams each brand and butt international capital markets through Hong Kong listed company, the next step in Stockholm market.
This is not surprising in respect of capital and the cost of
experience 2018 Year – 2019, we know that the global auto market Today’s pattern different from before, the growth rate slowed down, pressure increases, the economic environment deteriorated. It was at this 2-year period, the world of motor racing taking place in a lot of new cooperation, restructuring, such as cooperation FCA Group and PSA Group, such as hand between Ford and Volkswagen Group, Mr. Li another example Daimler shares.
Therefore, in this situation, the merger and reorganization of Geely Automobile and Volvo Cars is the flow, and can win a lot of good:
1 point of view of business operations will be more efficient more flexible, because the new four modernizations concept of development of the global automotive industry no longer earlier, Chinese market proposed Ye Hao, ACES first strategic overseas giants BMW Hao proposed, new energy, intelligent network-linked, autopilot, share use these require a lot of pre-investment and integration. For the reorganization and integration of Geely Automobile and Volvo Group, this reorganization will lead to more capital and further reduce costs, or whether operators also design and manufacture.
2. And in the integration into the IPO, the possibility of dual listing, but also further enhance the market value of auspicious and bring significantly more restructuring funds. The key point is that Volvo’s IPO market.
to
2018, Volvo Cars had spread over the IPO news. However, due to marketGeely for Volvo valuation has been lower than expected, resulting in the Volvo IPO has not been further promoted. Right now, if Geely and Volvo Cars to achieve business restructuring, it means that Volvo can be achieved in Hong Kong. And in addition to Hong Kong, as well as the possibility of integration in the Stockholm market.
3 And in addition to this, the Chinese automobile enterprises occupy a top ten car prices places. 2019, Geely Automobile has achieved sales of 1.362 million, ranking China first automobile brand sales. Volvo Cars global sales in 2019 of about 705,500, which is Volvo Cars since its establishment 93 years, annual global sales topped 700,000 mark.
Total sales of 2.0675 million, taking into account the FCA and the PSA Group merger, Geely – Volvo restructuring and merger, so that it can advance the top 10 in the world, which for the future development of China’s auto industry is undoubtedly a good thing .
Volvo Cars is also advantageous for good
From the point of view of Volvo Cars, which was founded nearly a century for a luxury brand, there is a clear positive.
from the point of view of sales, global sales of Volvo cars in 2019 hit a new record was established 93 years since, breaking the 700,000 mark.
700 000 + annual sales, meaning that today’s Volvo ranked in the global luxury brand more forward position. Ranked in the forefront of Western Europe is still the familiar three brands, namely, Mercedes – Benz and smart (245.6 million units) in the first row, BMW, MINI, Rolls-Royce (2.406 million units) in the first row Second, the Audi 184 million units (ranked third), and Lexus global sales exceeded 760,000 units.
and now the possibility of recombination Geely Automobile and Volvo Cars, no doubt to the Volvo forward further possibilities.
On the one hand, like Lexus and Audi, backed by a strong parent behind, let it find more new games are played in the market, dare to be innovative shots, also has a stronger fight against the risks.
On the other hand, get more money, then improve efficiency, it can also achieve further technological innovation, breakthrough mainly around the security of a single selling point, to enhance their brand premium. After all, today’s market environment, consumers are no longer alone to pursue an independent selling point, but more needs to put in place a full range of performance models.
Written in the last:
Overall, opened in 2020 after the news of the resumption of work, is good, but also a smart move Geely.
by the brand collaboration in basic technology research, infrastructure development, to maximize the sharing of resources of the Group, R & D investment to ensure maximum efficiency. From this point of view, even if there is no opportunity to IPO, Geely and Volvo’s reorganization will happen in the future, because that is in line with market trends but also further development opportunities for Volvo.
correspond Geely globalization strategy point of view, it now has a vehicle involved in mobile travel, finance, science and technology and many other sectors in the future of the world, has become a truly global car prices. Today, its operators play in further innovation, but also has great potential to Chinese car prices are a new development model.