Group Geely-owned Volvo is considering a full merger and the creation of a global automaker. Such a move “will create additional competitive advantages” and “speed up financial and technological synergy”.
Chinese Geely Automobile Holdings Limited became the owner of Volvo in 2010, buying the company from Ford for $ 1.8 billion. Until recently, the Swedes maintained a relative independence, although regularly exchanged technology with controlled Geely brands (mainly the most Geely and premium Lynk&Co). In the past year, manufacturers have combined their motor division and created a separate business unit.
Now the company is thinking about a full-scale merger, which will be born a new global automaker. This will allow you to use “economies of scale, the available knowledge and resources to become one of the leaders of the transformation industry.” According to the Chairman of the Board of Geely Li Shufu has been, “will increase the synergy within the group, but retained the integrity and competitive advantages of the two brands.”
Association c Geely allows Volvo to compete with Volkswagen, as well as the newly formed Alliance FCA-PSA. In addition, Volvo will gain access to additional production capacities in China, and Geely – assistance in the deployment of the brand in the European market. However, the timing of the merger has not yet been determined. While the company only organized working groups that will develop proposals for each of the parties to the transaction and bring it out in discussion boards.
In addition to Volvo, part of Geely Automobile Holdings Limited Geely itself consists, Malaysian Proton, the British Lotus, manufacturer of the London taxi LEVC and premium brand Lynk&Co.