On February 24th, Geely Automobile (HK.0175) and Volvo Motor Co., Ltd. announced that both parties reached a merger program.

After the merger, both sides will maintain their own independent architectures, while achieving strategic objectives, continue to expand the field of cooperation, and deepen cooperation in the “new four” of the automobile.

On February 24th, Geely Automobile (HK.0175) and Volvo Motor Co., Ltd. announced that both parties reached a merger program.

After the merger, both sides will maintain their own independent architectures, while achieving strategic objectives, continue to expand the field of cooperation, and deepen cooperation in the “new four” of the automobile.

In fact, in February 2020, Geely Automobile has disclosed the announcement that the company is discussing the possibility of recombining through the business combination of the two companies (Volvo Auto) management.

The formal announcement of the merger programs today marks a further entered the “deep water area” in the cooperation of Geely Motors and Volvo.

Li Shufu, chairman of Geely Holding Group, said that the current global automotive industry is facing profound changes, we must seek open coordinating, intertwindness. The Geely Automobile and Volvo Motors will further integrate business, and will establish a more close strategic synergy to achieve the best combination.

Open the next golden ten years

In 2020, it was the 10th anniversary of the 100% equity of the Walvo Car Company. After ten years of integration development, Geely Automotive and Volvo car all in the world’s automobile stage.

The public information shows that ten years, Volvo cars have doubled globally, and sales in the Chinese market reached 5 times ago. In terms of Geely Automobile, since 2017 has won the first China brand passenger car sales.

Data show that in October 2020, Geely Automobile has more than 10 million sales in the world. It is the first Chinese brand car company that exceeds 10 million passenger production and sales.

In addition to achieving each other’s growth in sales, Different cooperation between Geely and Volvo, in the establishment of Geely Europe R & D Center, and joint venture has created high-end brand packets, the brand is currently 4 Over 450,000 users have been obtained in the year.

Today, Geely and Volvo’s deepening integration is the next situation of the two parties to the chance of changing the chance of chances in the automotive industry.

Geei Motor Group CEO, President Dang Hui, said that Geely Automobile and Volvo have established a closer partnership, helping Geely Automobile to accelerate the global layout, and accelerate the development of new generation of smart electric vehicles and layout related travel services.

Focus on new four-way forward-looking technologies

It is understood that the Geely Automobile and Volvo Automobile Deepening Cooperation Program will focus on the “new four” forward-looking technology, combining and collaboration in the field of power assembly, three-electric technology, high-automatic driving, including: total power Completed, jointly developed the next generation of pure electric exclusive modular architecture and high automatic driving solutions, expanding the joint procurement range and scale, and implementing the strategic partnership in the field of overseas sales channels and after-sales networks.

Specifically, Geely Automotive and Volvo will be combined with power assembly services in equity merge. The new power assembly company is expected to invest in the end of this year and will also provide products and services for third-party automobile companies.

In the electric vehicle core technology sharing level, the two sides have launched joint development, Volvo, Geely and rapid growth of the next-generation pure electric exclusive modular architecture, and the polar brand will share the architecture. In addition, Geely Automobile and Volvo will also realize technology sharing, shared battery packs and electric drive systems in three electricity and intelligent networks, and reduce costs through joint procurement.

At the same time, Volvo Automatic Driving Software Development Corporation ZENSEACT will also lead, develop a world-leading high-automatic driving solution with Geely Automobile.

The industry believes that the further integration of Geely Automobile and Volvo Auto is the strong combination of both sides in the “new four-term” trend of the automobile. It will further promote the global layout of Geely Auto. For Volvo, it will also operate, technology. Innovation, market expansion and cost implementation resource optimization.

Committed to created long-term rewards for shareholders

“Since the announcement of the company and Volvo Automobile to discuss the possibility of business combined with Volvo in February last year, the management of the listed company is widely adopted by the listed company.” “Chief Executive, Executive Director of Geely Automobile Holdings Co., Ltd. A large amount of shareholders and investors generally believe that in the past decade, Geely’s development is inseparable from Volvo’s support. On the basis of the previous cooperation, if you can seek a good cooperation program, you can further enlarge each other. It is also more advantageous to get stronger competitiveness in Geely Automobile and Volvo car in the “new four” trend of the car.

However, he also revealed that some shareholders and investors also expressed a certain concern and worried that the equity will be diluted after the merger.

Gui Sheng Yue said that the existing merger program is that the management of listed company is fully integrated, and the opinions of the investors can maximize the advantages of both sides, and the shareholders and investors can fully bonus Also eliminated everyone’s concerns.

In his view, for listed companies, it is very important to eliminate uncertainty from all levels. The announcement of this cooperation program is actually eliminating various uncertain factors. Geely Holdings Group CEO Li Donghui said in receiving media interviews that the current Geely Automobile and Volvo have made significant progress on the roads of the merger, whether the future will be launched in the operation of the capital market, and will respect the Board of Directors and shareholders.

Disclaimer: The above unmected sources, no water-free pictures come from the creativity of the insects. The contents of this document are for reference only, and the investment recommendations are not constituted, and investors should operate accordingly.

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