Geely becomes the largest shareholder of Daimler_from small private enterprises to global large groups

Geely Group Chairman Li Shufu spent nearly 9 billion US dollars to become the largest shareholder of Daimler's parent company Daimler Group. The People's Daily published a "like" to Geely on the 02nd edition of February 23, saying that Ji used 16 In the year, it has become one of the top ten brands including Geely, Volvo, Lectra, Proton and Lotus, with a sales volume of 1.82 million vehicles and a global automobile group with an estimated revenue of more than 270 billion yuan. Let's take a look at the related content with the car electronics editor.

At the beginning of the new year, Zhejiang Geely Holding Group Co., Ltd. reported frequently. Following the sales of Geely Automobile in 2017 exceeded 1.247 million units, a year-on-year increase of 63%, and the net profit is expected to double. In January this year, Geely Automobile achieved a good start, with 155,000 vehicles sold in the month, a year-on-year increase of 51%.

The sales of Volvo Cars under Geely Holding in 2017 totaled 571,500 units, a year-on-year increase of 7%, and the profit reached SEK 14.1 billion, a year-on-year increase of nearly 30%.

16 years ago, Geely Automobile sold less than 22,000 vehicles a year, and its revenue was less than 1 billion yuan. Sixteen years later, Geely has grown into a global automobile group with a total of 1.8 million vehicles and Geely, Volvo, Lectra, Proton, and Lotus, with an annual sales of 1.82 million vehicles and a revenue of more than 270 billion yuan.

“From local private small enterprises to global auto groups, thanks to the comprehensive integration of international resources, continuous technological innovation, continuous transformation and upgrading, it is also inseparable from efficient decision-making, visionary and sustainable strategies.” Li Shufu, chairman of Geely, said.

With the flexible mechanism of private enterprises, Geely quickly lowered the price threshold of family cars to 50,000 yuan or even lower, and the sales volume of enterprises increased rapidly. In 2007, Geely achieved a sales of 218,000 vehicles, ranking second among domestic brands. Just this year, Geely opened the road to strategic transformation. “Only from the price-winning strategy to the technology-leading strategy, from cost leadership to brand innovation, from profit-oriented to customer-centric, Geely can truly realize the corporate vision of 'making everyone's boutique car', Chinese brand car talent Realize high quality development," Li Shufu said.

In August 2010, Geely successfully acquired 100% equity of Volvo Car and related assets (including intellectual property rights) and became the first automobile multinational company in China.

The acquisition is only the beginning, and how to achieve convergence and synergy is the key. Geely's acquisition of Volvo is a combination of mergers and acquisitions, to give full play to synergies. In the first five years after the merger, Geely Holding invested $11 billion in Volvo's R&D investment, developed the world's leading SPA scalable platform architecture and a new generation of powertrain, built CEVT (CEIBS Automotive Technology Center), and invested in 12 billion yuan and Volvo jointly developed a CMA structure for small cars, which not only drove Volvo sales and profits to rise year by year, but also jointly promoted the birth of the new high-end joint venture brand.

The synergy effect of technology, R&D, procurement and brand has promoted Geely's “Brand Up” strategy to achieve remarkable results. In 2016, Geely Automobile sold 766,000 vehicles, a 50% year-on-year increase. In 2017, Geely achieved a high growth rate of 63%, and passed the annual sales threshold of one million.

In 2017, Geely's overseas acquisitions accelerated. In June, it acquired the equity of Malaysia Proton and Lotus Lotus. In November, it wholly acquired the American flying car company Terrafugia. In December, the Volvo Group became the company's largest shareholder and had 15.6% of voting rights.

At present, Geely has formed a global R&D system of four R&D centers and four modeling centers in the world, with a research and development team of more than 13,000 people.

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