It took nine years for Geely to take over the Volvo Tiger Sniffing Network.


2019-10-07 19:53.
In October 7, 2019, the Geely Automobile Group under the auspicious holding group (hereinafter referred to as “Geely Automobile”) and the group of automobile (hereinafter referred to as “car”) are discussing the possibility of merging its engine business, aiming at establishing the world’s leading dynamic assembly business unit, developing and producing the leading powertrain and hybrid power system.
The plan is still in the early stage of planning, and has not been confirmed and implemented by the two sides. After the plan is formed, it is still necessary for the board of directors, the board of directors of both sides and the regulatory authorities of both countries to approve the plan.
But once it is successful, for Geely holdings, it will be able to combine the R & D and production powertrain and hybrid system with its brand names, including Geely, Geely, lead, proton, lute, London electric, and so on, to further enhance the synergy between multiple brands.
Since Geely bought the company 9 years ago, many people have been arguing about whether or not Geely has used the technology. Until the two sides jointly launched the leader car, many people still question this question because of the form of cooperation.
So what does Geely do with useless technology?
Yes, it’s just not as simple as I imagined.
The first thing to make clear is that the acquisition of the car from the group is only the Geely Holding Group, not the Geely Automobile.
Geely Group owns 100% stake in the company, but also owns 10963 patents and special intellectual property rights. However, the terms of the merger agreement read that “Geely can not directly use the technology of the car”, that is, the technology can only be used for the production of the brand cars.
Moreover, the intellectual property rights shared by the two parties involved in R & D technology in the group were shared only with them, and the cooperation agreements signed with them were still carried out. It means that this part of technology can only be used in the case of agreement, not to mention Geely. (for example, the SI6 six cylinder engine, which is jointly developed by China and Hong Kong, can continue to be used, and Geely will not be able to do so).
Some people will wonder if they are fully bought, why not do some “paper work” and then “directly” to use technology?
The reason is simple, because even if it is acquired, both sides still need to achieve the common goal of M&A, that is, mutual benefit. Otherwise, blindly “forcibly seize” will only cause one party’s discontent, and lead to the failure to win-win cooperation.
In 2004, SAIC purchased Korean Shuanglong Automobile. Because of lack of experience, during the cooperation period, SAIC adopted a more “rough” way to integrate resources, which aroused strong dissatisfaction of the Shuanglong Association. It accused SAIC of “stealing the technology of Shuanglong Automobile” instead of trying to cooperate, thus launching a campaign to expel the management. Finally, SAIC withdrew from Shuanglong, with a total of 4 billion RMB. The acquisition fee has gone through the roof.
So Geely Group learned a lesson and made a series of combination punches.
When Geely bought the company, Geely did not dismiss the original employees, and joined the three representatives of the board of directors in the new board, and hired the Swede as vice chairman of the car after the merger. The chairman of the board of directors (only 2 of the 8 directors were Geely). In addition, Volvo headquarters and R & D center in Sweden do not move, its daily operation is responsible for its original management team.
After being changed by Ford, Volvo’s market share declined from 12.6% in 1998 to 7.2% in 2009, and its sales volume was only 335 thousand. So Geely secured a comprehensive and detailed plan for reviving the car crew.
Then Geely began to gradually promote the technology integration route.
In November 2010, Geely Automobile and automobile co founded the “Geely and Geely dialogue and cooperation committee”. Under this cooperation mechanism, the two sides have gradually carried out exchanges in automobile manufacturing, spare parts procurement, new technology research and development, personnel training and other aspects to achieve information sharing.
In March 2012, Geely and Volvo reached a technology transfer agreement. Since then Volvo has gradually transferred its technology to Geely. In December of the same year, Geely motor signed three technology transfer agreements with GMC, including the upgrading platform of the GMC, the whole system of vehicle air quality control and the innovation technology of GX7 security.
For example, Geely B-Class Car Bory is manufactured on the KC platform extended by GMC platform, and many of its security configurations are obtained through technology transfer. Not only that, its appearance is designed by Peter Hobri, the former vice president, but the chassis adjustment is optimized by the supplier Lean Nova.
Of course, just a few technology transfers are not enough to meet Geely Group’s blueprint.
In February 2013, Geely Group and China Automotive Technology R & D Center (CEVT) were set up in Sweden. About 500 of the 1500 employees who worked in the company came from China. Through joint research and development, Geely Group further strengthened the strategy of “technology sharing”. For example, the CMA modular platform used by neck and XC40 is the result of CEVT. (Intellectual property belongs to Geely Group)
In August 2017, Geely Group and JV set up two joint ventures. First, the Geely technology joint venture company, each of which shares half of its shares, works together to share and share their cutting-edge technologies (including joint procurement of components and new generation of new energy platform technology research and development). The two is 5:3:2, which is jointly established by Geely, car and Geely Group.

Drive-E is the most popular and cost-effective engine in the leading car. In fact, Drive-E is not the code of the engine, but a series of energy-efficient powertrain, covering the engine, gearbox, hybrid power system, production platform and so on. However, as a 4-cylinder engine, through the combination of modular design and a variety of engine technologies, it can provide low fuel consumption and strong power, but also compatible with a variety of platforms (including mixing) to adapt to future changes in the automotive market.
You may also understand why Geely continues to promote the rhythm of collaboration.
However, this cooperation may not be “smooth sailing”. On the one hand, models with similar power systems may impact Volvo’s brand market and lead to resistance from Volvo. In addition, although the company has created a brand image of high performance and low price, Jilly car has retained the memory of the “low-end vehicle” in the minds of consumers, adopting more advanced technology. The power system is bound to increase the cost and the selling price.
Through various ways, Geely learned from technology and used its products. Meanwhile, the sales volume of its brand also increased year by year, turning losses into profits.
Some people may joke, “is this car a Geely or a”, but in fact, most consumers do not care about this problem. They are more concerned about the adequacy of the vehicle itself, whether the configuration is high enough, and whether the price is more attractive.
The “overtaking of corners” in China’s automobile industry may not be as good as it is supposed to be, but at least the big manufacturers’ Eight Immortals crossing the sea ‘try to improve their competitiveness in different ways. No matter what the result is, they will benefit consumers eventually.