Old car brands of Europe have a different fate. Just look at Czech Skoda or Swedish Volvo, or British Land Rover, Jaguar, Bentley or Rolls Roys. But each of them was able to survive only in «marriage». Alas, but these are the rules of the game on the global automotive market. Skoda «Happy Marriage» with German Volkswagen. But the Swedish Volvo and Chinese Geely recently passed the «pink» wedding — 10 years of living together.
We will remind, in the Already distant 1999, American Ford bought a deeply unprofitable car division of Volvo Cars for $ 6.45 billion. The remaining part of the Swedish company Volvo Truck focused on a more profitable release of trucks and buses. However, after the financial crisis, which the American company has been improving the globalization, the Ford leadership began the restructuring, in the course of which the British Land Rover and Jaguar sold the British Land Rover and Jaguar (the buyer became the buyer, the owner of the Tata automaker). But the Chinese Corporation Geely bought a 99% stake in Swedish Volvo in 2010, Ford is only 1.8 billion dollars.
Chinese automaker Geely has been owned by a deciduous auto accompanier for a dozen years, but still Volvo and Geely work as separate companies. Today we are talking about a full merger, which will create not only the first Chinese automaker global scale, but most importantly, this is an economic effect, since it will make it decently to save both in production costs and at expenses for scientific research and development.
It is no secret that China has long been the largest automotive planet market. It remains the first car market in the world, even now despite the recent decline in car sales due to Coronairus. However, the title of the most causing market in the world determines the fact that the fact that Chinese automakers are possessed by one feature — they mainly sell cars to Chinese consumers.
The complete merging of the Chinese and European automaker, which has large operations in the United States, will be a step away from the internal car market of the PRC. The upcoming merger will help speed up the export of cars from the Middle Kingdom to Europe and the United States, which is now reminiscent of weak streams, but has the potential to become a powerful stream, like a huge export from South Korea.
Recall that the global auto industry of the company is constantly under pressure, forcing automakers to consolidate, to find resources for the design and production of cars, and today there are already electrocars and autonomous cars. Therefore, in this sector of the global industry so many mergers and acquisitions. For example, quite recently, FCA (Fiat, Chrysler) and French PSA Group agreed on a full merger, and Ford and Volkswagen announced a joint work on new models. General Motors created CRUISE to create the next generation of cars and received about $ 2 billion from a competitor to Honda.
As for the Union Volvo and Geely, his leaders talk about the preservation of brands: «We plan to maintain a distinct individuality of all of our brands: Geely, Volvo, Lynk & Co and Polestar.»
Lynk & Co. And Polestar is new brands created as a result of the collaboration of Volvo and Geely. Cars are designed in Sweden, but are collected and sold in China. In the near future, their appearance on the car markets of Europe and North America is expected.
Also, the Swedish company Volvo opened the first plant in the United States in 2018 in the south of California. The Swedish automaker became a pioneer who began five years ago to export cars from China to America. Global sales of Volvo grow despite the fact that in general the auto industry has recently been observed a decline in sales. So, last year, VOLVO sales rose by 10% and reached 705 thousand pieces. It seems like a bit, but with a Chinese partner, which has already become a global player, the Swedish brand will reach many other heights.