Volvo and Geely prepare deep collaboration but rule out full merger

Volvo and Geely in early 2020 stated they were considering a whole merger to more raise synergies in the locations of technology sharing and cash increasing. Quickly forward to nowadays and the two firms say they can nonetheless completely gain from cooperating without merging.

“Having evaluated different choices to understand worth, [Volvo and Geely] concluded jointly that a collaboration model between two standalone providers is the greatest way to secure ongoing development and at the similar time accomplish technological synergies in numerous spots,” Hakan Samuelsson, Volvo’s CEO, mentioned in a assertion.

The organizations initially thought of the merger as a indicates to raise their funds raising efforts ought to the merged entity be made a community organization. In their 2020 announcement, Volvo and Geely claimed a merged firm would have obtain to the world-wide funds sector by listing in both equally China and Sweden.

Volvo had planned to go public on its have in 2018 but named off the transfer since of fears of the escalating trade war at the time in between the United States and China and also in between the U.S. and Europe.

Volvo is by now a subsidiary of Geely, with the Chinese car large snapping up the Swedish automaker from Ford again in 2010. With Geely’s aid, Volvo has transformed into a authentic rival to the German luxurious manufacturers and is returning file profits and income.

Even devoid of the merger, Volvo and Geely program deep collaboration in the areas of powertrain, auto platforms, procurement, product sales, and self-driving technological innovation. Some distinct ideas like the sharing of the SEA (Geely) and SPA2 (Volvo) platforms, the merger of internal-combustion motor and hybrid powertrain producing into a new organization, co-building self-driving technological innovation below the guide of Volvo’s Zenseact self-driving division, and the sharing of Volvo’s vendor network for the international expansion of Geely’s Lynk & Co. manufacturer.