Volvo: Will “unmaribism” in the end

For the merged announcement released a year, last week, Geely and Volvo were finally settled.

On the evening of February 24, the two sides jointly announced the best merger program, while maintaining their own independent architecture, while continuing to expand the field of cooperation and play a synergistic effect.

Under this framework, main actions include: combined with power assembly services, jointly develop the next generation of pure electric exclusive architecture and automatic driving solutions, expand the joint procurement range and use Volvo overseas channels to promote piling brands globalization.

But the eyes can see that in addition to the shipment, the power assembly business that has been deeply integrated is not matched with the “merge”. Under the name of the “merge”, there is always a bit without middle.

01 Who regrets marriage?

For more words, this “best merger program”, combined with it, more like a “unmarried” declaration.

After all, according to the announcement of the Geely, the two parties will become a “powerful global group” after the business reorganization, and the Assets of Volvo will be included in the Hong Kong listed company, and consider listed in Sweden.

In other words, by merging, the outside world can look forward to a brand, a company, a stock or even a group. Nowadays, the above situation has not yet appeared, and the two are deliberately declared independent in the announcement, and it can be described as cloud mud with the previous expectations.

It is not difficult to imagine, at least one of them has problems.

Geely seems to have always been a positive driver of merger. In combination into Walvo, absorb the quality assets of the latter, build a global car enterprise with more than 2 million annual sales, potential market value of more than 50 billion US dollars, the prospects are indiscriminate.

In addition, play the advantage, using a set of systems, continue to improve the cost structure, should also be within the plan of Geely. After all, it is expensive for the luxury brand of Volvo, the current profitability is not even gentle, and there is a improved space.

But from the perspective of Volvo, the benefits of the merger will not be so obvious. On the one hand, after being acquired by Geely, it sells globally, the revenue is high, and it has already entered the right track, and the future is only necessary to maintain the synergy with Geely, and do not need depth attachment. Moreover, although it is acquired by Geely, the body of the luxury brand is still in the budget, and the foreground refuge is made once it is absorbed. Moreover, there is also the Swedish government and trade unions to be “taken away” in the national treasure brand.

This is not difficult to understand, why is it a proactive thing in a matter of mergers, but a joint working group established a year ago, it was the leader of Volvo CEO Samuelson. Where is the center of work, it is self-evident.

Just, the follow-up progress of things is not going well. Especially with the basis of the expansion of the epidemic and the basic determination of Geely regression A, the negotiations related to the merger are put on hold.

In July last year, Volvo spokesperson said that due to the preparation of Geely is preparing to go public, the potential mergers of the two companies cannot discuss the potential mergers of the two companies. Once Geely completed the activities related to this, the negotiation will recover.

Now that Geely landing book cash cash is all, it has passed cooperation with Baidu, Foxconn, Fara, etc. in recent times, and is a frequently laundering. It is the merger with Volvo, and there is no movement, it has become the biggest question mark of high hanging head.

This seems that the “shrink” version of the merger will be launched.

02 do not marry, it is very good

However, Volvo obviously doesn’t want to be the reputation of “regret marriage”.

At the Geely Auto Investor Conference held on February 25, Samuelson said that existing programs have made both sides “enjoy the benefits of equity mergers, and do not have to bear the burden”, so for companies, employees, customers, and investors. It is all “best mergers”.

In a sense, this is true. With this “unmarried” declaration, not only help Geely sweeping the clouds before listed. For Walvo, which is striving to go to the upper floor, can also make its team, management, and investors from uncertain states, focus on responding to the market.

In the end, Geely acquired Volvo for 10 years, although he has always adhered to the “stocking” policy, but the mutual benefit of both parties handed over hands, but it is visible.

Volvo benefits from Geely’s funds and localized support, and the global sales increased by double in 10 years, the Chinese market has turned five times, and the second-line luxury brand preceding. Geely is under the technology and brand bonds in Volvo, from the middle player transforms into an annual sales of over-million independent scholars, and more incubated the leading benchmark brand like the packet.

Today, Volvo and Geely continue this model of relationships that have proven to be very successful. Naturally, there is no problem.

Moreover, the new power assembly company that combines mixes and high-efficiency internal combustion engines can be used for both transformation paths, and can operate in addition to external operations. It has become a new business growth. How much is a substantive pace of integration.

And jointly developed the next generation of pure electric platforms and automatic driving schemes, which can be seen as part of the synergy on traditional cars, and jointly explore the outline of intelligent electric vehicles. After opening, Li Shufu said in the internal speech, said that “positive participation in the intelligent electric vehicle market competition”, holding the whole system, including Geely and Volvo, should be the meaning of the question.

As for the coordination of coordinates and the channels between packets and Volvo, it is also based on the status quo, the purpose is to maximize collaborative effects.

It is said that Samuelson Leaders’ combined joint working groups have been found by financial calculations, both parties will bring $ 8-1 billion in the same effect on synergies. This figure can resist any party in 2020 profits. The subtext is, even if you are not married, both parties are partned, you can also have the same red fire.

03 Volvo: Take your own way?

What’s more, as a global luxury brand, for the future, Volvo must have its own calculations.

Samuelson said at the Geely Automotive Investor Conference. “The two companies must ensure that the revenue is growing, and the motility must continue to be lost,” and the adjusted merge plan can make Volvo and Geely Realize this goal.

The foothold is “two companies”, but more is more Volvo’s heartbeat. After all, the scenery of the overall boom index is not high, the scenery of the luxury brand can be said, especially in the Chinese market. In this case, I don’t want to have an increased momentum by the field factors. It is naturally not difficult to understand.

As for a longer intent, in addition to the mutual borrowing of Geely, Volvo also has its own positioning and layout.

The brand unique, safe and environmentally friendly label is a major advantage in Volvo participated in the future competition, and it is also the property that does not want to be diluted. Polar technology, environmentally friendly cockpit, recycled materials, etc., Etc. Enthusiastically chase the concept, which is already standard actions in Volvo. Moreover, in many international brands, Volvo is also one of the pioneers of electrification. At present, the current flagship 90 series has been fully electrified, and the strategy from the top is very clear.

But in terms of pure electric products, Volvo is currently in general. Whether the poor is still launched last year, there is a characteristic but is limited to product power and positioning, and there is a sense of feeling. With the spa2 platform and gelatine SEA vast architecture, follow-up products are expected to retain the Volvo brand characteristics, and further in the product power. The next-generation pure electric architecture jointly developed with Geely is to be a strategic reserve for the next 5-10 years.

In intelligence, Volvo’s footsteps are not radical, but it is solid.

When many brand obsessed launched a car product in a quick way, it is very good to have a clear stream based on the original Android system development, and it is also a good foundation for the short-term function expansion and intelligent experience.

In terms of automatic driving, you can imagine that Walvo will be safely reflected in Guizhen, which will not dare to rush in front of the new forces, and you should be relieved once you can shoot, safety and experience.

Walvo’s subsidiary ZENSEACT, which is responsible for automatic driving software, which has been kept low-key, which will become the main platform carrying its dreams with Geely automatic dreams. It is reported that its first batch of delivery will be applied to the SPA2 platform, including automatic driving of highway navigation that includes heat.

Of course, there is still something about the future. That is, according to the current “merge” mode, Volvo basically determines the independent landing of the capital market, thus leaving an important hematopoietic passage for yourself.

Overall, in the future, Volvo, there is a big roof to cover the wind and rain, but also keeps full possibilities for yourself, insist on not marital, there is nothing wrong with it.

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