Easy Car has experienced Geely's acquisition of Volvo for ten years: it will live up to its youth and the future can be expected.

March 28th is just an ordinary day for many people, but it is a very historic day for Volvo and Geely, and even for the whole automobile industry in China and the world.

The clock goes back to ten years ago. 20 10 At 4pm on March 28th, Li Shufu and Geely Volvo, who returned from Sweden, purchased the project team and went to the Grand Hyatt Oriental Hotel at Chang 'an Street 1 in Beijing. In the conference hall of the hotel, more than 300 journalists have been waiting in place. They expect to pry open Li Shufu's mouth, who has been silent about buying Volvo before.

On the same day, Li Shufu announced for the first time that Zhejiang Geely Holding Group had signed a formal agreement with Ford Motor Company of the United States on the same day, and Geely Group acquired 0/00% equity of Volvo Car Group/KLOC. "As one of the most important overseas acquisitions of China's automobile industry so far, this is not only an important historical step taken by Geely Holding Group, but also marks that China and the world automobile industry have entered a new historical stage." Li Shufu said: "Volvo, one of the three famous cars in the world, can't be bought with money. Ford has its own value orientation and standards when choosing a new owner. Geely has obtained such qualifications through many bids. "

Looking back at history, it was a "snake swallowing elephant" acquisition that shocked the whole world. As Li Shufu said, the fate of Geely, Volvo and even the world cars was rewritten from that day on.

Make full preparations to complete the "snake swallowing elephant"

There are few successful cases in a large number of cross-border mergers and acquisitions. Geely's successful acquisition of Volvo, from the current resumption of trading, is because it conforms to the economic laws and general trends at that time; Besides, Geely did a good job by herself.

I still remember that in 2007, Li Shufu published the "Ningbo Declaration" in Ningbo, as a symbol, Geely Holding Group began to implement strategic transformation. "Why do we need strategic transformation this time? It is to prepare for the acquisition of Volvo. " Li Shufu later recalled that according to his research at that time, Ford would sell Volvo sooner or later.

Therefore, Geely, whose domestic business was booming at that time, not only sought a breakthrough in the China market strategically, but also wanted to enter the global market. However, after Geely repeatedly indicated its intention to Ford, Ford replied: Sorry, Volvo is not for sale.

Time gave Li Shufu an assist? . In 2008, the financial crisis swept the world and the whole world economy was hit hard. The American auto market has been seriously affected, and the sales volume has dropped sharply. In contrast, China auto market has gone up against the trend. In this context, at the end of 2008, Ford Motor Company made it clear that it was "seriously considering selling Volvo".

With this sentence, Geely quickly set up a professional M&A team. After a long period of efforts, in September 2009, Geely ushered in the key node of acquiring Volvo: Ford Motor Company publicly announced that Geely became the preferred bidder for Volvo.

What is unforgettable is that in this process, there is an episode that has been widely circulated so far.

In August 2009, in order to convince the powerful Volvo Trade Union, Li Shufu took his team to Sweden and Belgium, and visited all trade union leaders and relevant departments successively. In the process of talking with union members, Li Shufu suddenly heard this question: "Many people are interested in Volvo. Can you describe the advantages of Geely in three words? "

Li Shufu was caught off guard by only three words. Just when other people wanted to form a circle, Li Shufu had a brainwave and blurted out, "Me? Love? You. " . Instantly captured the hearts of many trade union members, the chairman of the Ghent factory trade union immediately took the Volvo factory emblem and put it on Li Shufu.

This means that under the general trend and environment at that time, acquisition has basically become.

However, just three days before Geely bought Volvo, Geely once again convened the board of directors to make a final decision on whether to buy Volvo. At that time, the industry was full of doubts about Geely's acquisition of Volvo, which was not strong. Facing the upcoming signing date, Li Shufu had to make a final choice. Li Shufu's internal speech at the board meeting was never known to the outside world before 10, and now I submit the full text:

"Taking the step of acquiring Volvo, I don't know what the result will be. We may face a life-and-death choice. At present, if you don't advance, you will retreat. If we withdraw from the acquisition, the society will definitely think that we are hype and gimmicks, which will do great harm to Geely brand; If I choose to buy it, I, Li Shufu, may lose everything, and my life and fortune will be involved. You are all professional managers. If Geely fails to buy Volvo, you can go to other enterprises. I really have no chance, so I can only go home and farm! Therefore, at such a historical moment, I hope you can help me make this decision together, but the risk is borne by me alone! "

"Today's choice, I feel that my will has been greatly challenged, and my heart is also facing a huge impact. This is a success or failure choice, and I will become stronger because of it. "

This is a touching speech, but it also shows Li Shufu's determination. After making up his mind to buy, on March 28th, 20 10, two hours before the signing of the acquisition, in the evening of Swedish local time 1 and at 7: 00 pm of Beijing time, Li Shufu made an overseas phone call and talked with nearly 1,000 Geely employees, including the grass-roots management team, and proposed to strive to build a world-class automobile enterprise.

After everything was ready, on March 28th, 20 10, at 9 pm Beijing time, Geely Holding Group and Ford Motor Group signed the final 100% equity acquisition agreement of Volvo Car Company.

Ten years of integration to achieve a win-win situation

"After the acquisition of Volvo, Geely has always insisted on releasing tigers to the mountains, fully authorizing, exploring development and in-depth coordination. On the one hand, we respect Volvo's original management and technological innovation capabilities and its global operation. On the other hand, we constantly explore ways to achieve deep cooperation between the two parties. " In the view of Yang Xueliang, vice president of Geely Automobile Group, the reason why Volvo and Geely have achieved rapid development since then is closely related to their insistence on brotherhood rather than father-son relationship.

In retrospect, there is a clear gap between Geely and Volvo in technology research and development and brand awareness. In order to avoid a series of adverse consequences such as brand dilution and cultural conflict. At the beginning of the acquisition, Geely adhered to the cultural tolerance concept of "Geely is Geely and Volvo is Volvo", which won the favor and recognition of Volvo people in a short time and became an important part of the successful integration of the two parties.

At the same time, Geely gave unreserved support to Volvo's subsequent development-from 20 1 1, Geely donated1/billion dollars to Volvo, which was mainly used to develop a new SPA platform and build a factory in China. It was also from this year that Volvo's performance began to improve.

Obviously, Geely's generosity and the concept of keeping pace with the times have dispelled the concerns of the Volvo team. Since then, the two sides have begun to integrate at all levels.

In 201110, the "Volvo-Geely Dialogue and Cooperation Committee" was announced, and Geely and Volvo began to enter a new stage of technical cooperation. On March 20 12, Geely automobile and Volvo automobile signed a technology transfer agreement; From 2065438 to September 2003, CEVT, the European R&D center of Geely Holding Group, began to operate, and the two sides formally carried out in-depth technical cooperation; 2065438+In July 2007, Geely Holding announced that it would establish a technology joint venture with Volvo Cars. At the same time, Geely Holding Group, Geely Automobile Holding Co., Ltd. and Volvo Car Group formally signed an agreement to establish the linklater Automobile Joint Venture Company.

Link is undoubtedly a key link in the cooperation and integration of the two. As an important strategy for Geely's high-end development, it can be endorsed by Volvo, filling the gap in brand positioning between Geely and Volvo. The first model, Lectra 0 1, was very popular after it was listed on 20 17, and Lectra 02 and 03 were listed on 20 18, which proved that this strategy began to be a great success.

By 20 19 and 10, Geely and Volvo further announced that they were exploring the possibility of merging their engine businesses, aiming at establishing a world-leading powertrain division. Obviously, once the integration is successful, it will undoubtedly further enhance the scale effect of both parties in R&D production, procurement and operation.

"Since Geely Holding acquired Volvo Cars, Geely and Volvo have strengthened cooperation in R&D, procurement, powertrain, manufacturing and other fields, and achieved fruitful results, realizing the integration of technology, culture and talents, laying a solid foundation for the sustained and healthy development of both parties and becoming a model for coordinated development of the industry." Yang Xueliang told E car.

The report card can prove this. In the past ten years, Volvo has grown from a Swedish-centered brand at the beginning of its acquisition to a truly global enterprise. In the past ten years, the global sales volume of Volvo has doubled from 20 10, and the sales volume in China has increased fivefold. In the past ten years, Volvo has made a profit. Operating profit (EBIT) in 2009? 519 billion SEK to 201914.3 billion SEK. Brand value promotion. In 2020, brand? In the list of the world's most valuable automobile brands in 2020 published by Finance, Volvo Cars ranks at169438+0.4 billion USD.

In the past ten years, Geely Automobile has grown into a leading brand enterprise in China with a sales volume of one million. Its revenue has jumped from 100 billion to100 billion, and its net profit has increased from 2009? From131900 million RMB in to 218? Annual RMB 654.38+02.674 billion; Since 20 12, Geely Holding Group has entered the world's top 500 for eight consecutive years, climbing 255 places to 220 places, with revenue exceeding 330 billion. The brand value of Geely Holding Group has been greatly improved. In 2020, Brand? According to the ranking of the world's most valuable automobile brands in 2020 published by Caijing, Geely automobile brand has become the most valuable automobile brand in China. The successful acquisition of Volvo officially helped Geely to open the road to globalization. For this reason, Geely successfully subscribed for Proton, Lotus and Daimler.

In the past ten years, Geely Holding Group has fully integrated into the global value chain system, realizing the global layout of manufacturing, R&D, procurement and sales. Join global partners and share the commanding heights of technology through collaboration. Geely has upgraded technology and formed an effective path of "new four modernizations". In the past ten years, Geely has created new advantages of online and offline integration, built an integrated travel ecology of heaven and earth, and gradually realized the transformation from an automobile manufacturer to a future travel technology group.

Win-win makes "snake swallowing elephant" a much-told story.

Nowadays, in the face of the wave of "new four modernizations" and the accelerated reconstruction of the global automobile industry value chain by sudden epidemic, the industry competition is becoming more and more fierce. Car companies must be fully prepared, take the initiative to embrace change and seize strategic opportunities in challenges.

In particular, Li Shufu has repeatedly said in public that there will only be two or three survivors in the automobile industry in the future, "it is impossible to win this war alone."

To this end, on February 10, 2020, Geely Automobile Holdings Co., Ltd. and Volvo Car Group announced that they were planning to integrate their business and form a more powerful global enterprise group.

Under the great changes in the past century, only with stronger technical capabilities and resources can we continue to lead the industry reform. The prologue of Geely and Volvo's second decade is beginning.

What is the significance of ten-year mergers and acquisitions?

"Geely's acquisition of Volvo is a natural trend, in line with the development law of the global automobile industry, that is, scale, specialization and globalization. The law of industrial change inevitably shifts the center of the global automobile industry from the west to the east. " Yang Xueliang said that Geely's successful acquisition of Volvo provided a vivid sample for China automobile enterprises to explore the international development mode and path.

This is also the case. Geely's successful acquisition of Volvo Cars is the first overseas acquisition of China automobile enterprises, and it is also an important way to accelerate the global expansion of China brand. Geely's acquisition of Volvo Car and its successful operation have proved to the outside world the great strength of China Automobile Company to participate in the restructuring of the global automobile industry.

More importantly, this M&A is a breakthrough in the previous automobile development mode, which has found a fulcrum for changing the automobile competition pattern and established confidence for the rise of China automobile industry.

For Geely, through mergers and acquisitions and integration, it has formed its own original ability of engineering research and development and styling design that is in line with international standards; Through the joint development with CMA, Geely has mastered the international leading architectural capability; Through mergers and acquisitions, Geely accelerated the standardization of quality system, completed the global layout of industrial chain, and finally realized the globalization of brand influence.

Geely's respect for different cultures and commitment during the acquisition of Volvo also provided an endorsement of Geely's credit and strength for its subsequent overseas investment and acquisition, and comprehensively enhanced the overseas image of China enterprises.

Today, Geely not only promotes the revival and sustainable development of Volvo car brand, but also realizes the cultural integration, talent integration and technology integration between Geely car and Volvo car, London electric car and Proton car. In-depth cooperation with Daimler Group, the synergy effect is merging, and finally win-win cooperation will continue to lead the global automobile industry reform and ultimately create greater value for users.

Write it at the end

With the rapid development of China's economy, it is a miracle that China's automobile industry has developed from weak at first to prosperous today.

Geely Automobile, which was initially ignored by people, resolutely shouldered the banner of independent brand innovation and continuously integrated global resources with a forward-looking vision, which not only fulfilled the car dream of China people, but also won the dignity for China autobots all over the world.

From Geely's successful acquisition of Volvo ten years ago to the coordinated development and detonation of industry expectations ten years later, the changes in the automobile industry are concentrated in it.

The story of Geely and Volvo continues.

We look forward to continuing to witness the story of Geely and Volvo in the next decade.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.