AutoBeta(AutoBeta.net)02/25 Report--

Geely Volvo's merger has finally made substantial progress. On the evening of February 24, Geely Holdings issued the latest announcement on the Hong Kong Stock Exchange announcing the latest merger plan with Volvo Group. Geely Holdings said in the announcement that after detailed research on various merger schemes, the two sides have found the best merger scheme at present, that is, the two sides will carry out a series of business mergers and cooperation on the basis of maintaining their existing independent corporate structures.

On February 10,2020, Geely Automobile announced that the company's management was in preliminary discussions with Volvo's management and had explored the possibility of restructuring through a merger of the two companies 'businesses. The two companies will be restructured to form a strong global automotive group, achieving synergies in cost structuring and technology development to meet future challenges. On the same day, Volvo announced that it was planning to restructure its business with Geely Automobile. The restructured assets would be incorporated into Geely Automobile's Hong Kong listed company and would consider listing in Sweden in the future.

In July 2020, Geely's merger plan with Volvo was shelved. Volvo said the merger plan would be put on hold because Geely Automobile Holdings 'board of directors had approved preliminary proposals for a possible issuance of renminbi shares and a listing on the Shanghai Stock Exchange's Kechuang Board. In December 2020, Li Shufu, chairman of Geely Group, said that Geely Automobile would restart the discussion on merger and reorganization with Volvo Automobile after landing on Kechuang Board, which means that Geely's merger with Volvo will also usher in significant progress after the listing of Kechuang Board.

It is worth mentioning that Geely Volvo's merger plan and last year's proposed restructuring plan significantly "shrink", the two companies will maintain various independent corporate structures, the scope of cooperation is limited to specific business areas, the two sides will no longer seek to establish a group company. In other words, the Geely Volvo merger was transformed from an "asset merger" to a "business merger." Geely said it was the best option for the merger.

Geely said in its announcement that after the merger, the two companies will merge and collaborate in powertrain, electrification, autonomous driving and other business areas.

In terms of powertrain, the two parties merged the powertrain business in the form of equity merger to form a new company to develop a new generation of dual-motor hybrid powertrain systems and efficient internal combustion engines. In addition to self-supply, the engine developed will also be supplied to other automobile companies.

In terms of electrification, on the basis of sharing SEA vastness and SPA2 electric vehicle architecture at present, both parties have started the joint development of the next generation of pure electric exclusive modular architecture, and will also realize technology sharing in three electric and intelligent network connection, share battery pack and electric drive system, and reduce costs through joint procurement.

In terms of autonomous driving, Zenseact, Volvo Cars 'autonomous driving software technology development company, is leading the development of the world's leading highly autonomous driving solutions. Finally, in terms of operational collaboration, the high-end brand Linkages will make full use of Volvo Cars 'overseas channel resources, continuously deepen collaboration in sales channels and after-sales service, and realize complementary resources.

According to the data, Volvo Car was acquired by Ford Motor Company in 1999. Due to subsequent poor management and other reasons, Geely Holding Group acquired all shares of Volvo Automobile for USD 1.8 billion in 2010 and became a wholly-owned subsidiary of Geely Holding Group.

Ten years after Geely acquired Volvo Cars, both Geely and Volvo have achieved certain development results. At present, Geely has become the head of its own brand in China, while Volvo's car sales in the global market are also rising year by year. It can be said that Geely's acquisition of Volvo is a performance of mutual benefit and win-win. After Geely acquired Volvo, the product technology has been rapidly improved. The two brands jointly developed CMA platform and launched Linke brand to realize Geely's high-end. Volvo is also under Geely's leadership to continue to deepen the Chinese market, making its global sales rise year after year.

Although Geely Volvo has not achieved "capital merger", after further collaboration between the two parties in business, it will bring long-term development to Geely, Volvo, Linkages, Polar Star and other brands in the future, strengthen product strength and reduce R & D costs. For users, there may also be some good.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat