Advantages:

1, financial support from state-owned banks and the government

It is understood that state-owned banks, including Bank of China, and their major consortia have promised to provide Li Shufu with a loan of at least $ 1 billion. Local governments such as Zhejiang, Beijing and even Tianjin, which are vying for Volvo's domestic projects, are also expected to provide Li Shufu with at least 500 million US dollars of "shells".

2. Geely is listed in Hong Kong and has a strong hematopoietic function.

The entry of Goldman Sachs last year brought Geely $330 million. At the same time, the Swedish and Belgian governments also provide guarantees for Geely's local low-interest loans.

3. Purchase 100% equity and intellectual property rights.

Geely Group will acquire Volvo Cars for $654.38+08 billion. This is the largest overseas automobile acquisition case in China's automobile industry so far, and it is also the first time that China automobile enterprises have acquired international high-end automobile brands.

Ford 1 1 acquired Volvo for $6.45 billion years ago. Last year, due to the financial crisis, Ford decided to sell Volvo to raise cash and focus on the development of Ford parent brand. It is understood that at the last minute of signing the contract, the two sides held fierce negotiations on the transaction price, which is expected to be $2 billion in the industry. The final transaction price is only 1/3 of Ford's purchase price in that year, and industry analysts believe that Geely bought it more cost-effectively. This agreement has yet to be approved by the regulatory authorities.

The headquarters will stay in Sweden and the new factory will be built in China.

In addition to the equity acquisition, the agreement also involves important terms reached by Volvo Cars, Geely Group and Ford Motor Company in terms of intellectual property rights, parts supply and research and development. Both parties stated that these agreements ensured the independent operation of Volvo Cars, the continued implementation of existing business plans and the sustainable development in the future.

As an integral part of this transaction, Geely Group will continue to maintain the good relations established by Volvo with its employees, trade unions, suppliers, distributors and especially users. After the transaction is completed, Volvo Car's headquarters is still located in Gothenburg, Sweden. Under the guidance of the new board of directors, the management team of Volvo Cars will be fully responsible for the daily operation of Volvo Cars, expand its business in more than 65,438+000 markets around the world, and promote the development of Volvo Cars in the fast-growing China market.

Geely Group will keep the existing factories of Volvo Cars in Sweden and Belgium, and at the same time, it will build a new factory in China in due course, so that the production will be closer to the China market. According to the reporter, Geely is currently considering setting Volvo's new factory in China in Beijing or Tianjin.

5. Relying on the China market, we plan to turn losses into profits within two years.

Li Shufu promised that as a new shareholder, Geely will continue to consolidate and strengthen Volvo's global leading position in safety and environmental protection and will not change Volvo's quality. "This famous Swedish luxury car brand will continue to maintain its core values of safety, high quality, environmental protection and modern Nordic design."

Disadvantages (w):

1, limited management experience

In Geely Ningbo base, automobile production is still in its infancy, and compared with Ford's production line, the two are really not an order of magnitude.

2. The strategic strength of talents is limited.

We don't deny that Geely has many talents, but in the face of a well-known brand, it is worth thinking about how many generals and talents Geely has who know the automobile strategy and manage the automobile production and marketing strategy. Therefore, people of insight put forward that the urgent task is to acquire talents and a good opportunity to acquire some single technology and auto parts enterprises, rather than rushing to acquire foreign auto brands. Because Volvo's assets and brand structure are very complicated, Geely bought Volvo, can it be digested?

The disparity between Geely and Volvo brands is too great.

Early discrimination will bring more discrimination after acquisition. Everyone knows that Geely's so-called unique brand only stays in our media propaganda, that is, in large and medium-sized cities in China, there are not many people who buy Geely, and there are also many people who discriminate against it. Geely's slogan is also "Building a good car that China people can afford". Since it is affordable, it is doomed to the positioning of its low-end car. Then I really want to combine with Volvo. Once changed, I wonder if Geely can afford it.

Opportunity (o):

1, the domestic automobile industry is picking up.

2. China automobile industry needs to inject new blood.

3. The demand potential of consumers in the automobile industry is huge.

Threat (t):

1. The financial crisis still brings great impact to the global automobile industry.

2. Consumers prefer imported cars.

3. Post-acquisition integration can not be ignored.

My opinion:

Recently, the controversial issue of Geely's acquisition of Volvo finally came to an end after Geely's successful acquisition. In fact, whether Geely's acquisition of Volvo is the right choice or not, I think today, when the matter has been finalized, we should no longer pay attention to the question of correctness, but how Geely can make "Volvo work for us" and how to use Volvo's technology to enhance the competitiveness of autonomous vehicles in the local market. What changes will Geely bring to high-end brands like Volvo? Can Volvo sell "people-friendly prices" while maintaining high quality?

Only by solving these problems, Geely's acquisition of Volvo will achieve the expected results. In a word, if Geely can successfully integrate and utilize its resources after purchasing Volvo, it will be of milestone significance to Geely and even the whole automobile industry in China.