AutoBeta(AutoBeta.net)12/31 Report--

In order to deepen cooperation in capital and business, Geely and Volvo jointly announced plans for a "restructuring and merger" in February this year to form a strong global automotive group to achieve synergy between cost structure and technology development. to meet future challenges. However, due to a number of reasons, the plan was temporarily shelved, and recently the chairman of Geely Motor talked about the restructuring and merger plan.

On the last day of 2020, Geely Li Shufu delivered a 2021 New year's address, summing up Geely's achievements over the past year, Li Shufu also talked about the restructuring and merger with Volvo.

"in 2021, we will restart discussions on the merger and restructuring of Geely and Volvo, or seek closer cooperation between the two sides," said Li Shufu. "to build a stronger and more competitive global enterprise group to meet more changes and challenges in the future."

In early December, Volvo CEO Hakan Samuelsson also mentioned the progress of merger discussions with Geely, saying talks could resume in the first quarter of 2021.

In fact, the planned merger of Geely and Volvo appeared in February 2020, but was suspended as Geely sought to list on the Shanghai Stock Exchange's Kechong board, and Geely had to ensure that there was no change in its capital structure before postponing the negotiations.

Now the mention of resuming negotiations means that a merger between Geely and Volvo is imperative.

In February 2020, Volvo and Geely jointly announced a merger plan. Volvo announced that it is planning to restructure its business with Geely, and that the reorganized assets will be included in Geely's listed company in Hong Kong and will consider a future listing in Sweden. At the same time, the integration is aimed at deepening cooperation between the two sides. More effective coordination in technology research and development, cost control and finance.

Geely said that after the restructuring, the two companies will become a strong global automotive group, achieving synergy between cost structure and technology development to meet future challenges. After the reorganization, Geely Motor in Hong Kong will be listed as the main body to realize the docking with the global capital market.

The merger of Geely and Volvo is more like building an alliance to achieve more coordinated development.

In addition, the merger will retain the uniqueness of each brand of Geely, Volvo, Lectra and Polar. It means that Geely and Volvo will develop independently in the areas of brand operation and marketing services after the capital merger of Geely and Volvo in the future.

At present, Geely owns sub-brands such as Geely, Lecker, Volvo, POLESTAR, Proton, LOTUS, London Electric car, long-distance car and so on, covering almost many market segments of passenger cars. Through the bridge of Volvo, Geely is expected to accelerate the process of globalization.

In terms of sales, Geely sold 150000 vehicles in November, up 5% from a year earlier, achieving year-on-year and month-on-month growth for four consecutive months, but Geely is still showing a decline in sales due to the depressed market environment in the first half of the year. Geely's total sales from January to November were 1166015, down 5.32 per cent from a year earlier and 88 per cent of its annual sales target of 1.32 million vehicles.

The Chinese market remains Volvo's largest single market. Volvo sold 17997 cars in China in November, up 24.5 per cent from a year earlier, with cumulative sales of 148033 vehicles from January to November, up 7.2 per cent from a year earlier. Volvo plans to develop into a pure electric brand over the next 10 years.

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