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Where does Geely buy Volvo?

For a developing country, it is the first time for its own brand to acquire international luxury car brands, which will surely make a strong contribution to the development history of China's automobile industry. As a result, Geely's acquisition of Volvo has attracted much attention. But if we look at it from a historical perspective, there is something interesting about it.


Automobile is the greatest invention in human history in the last century. The automobile industry derived from the industrial revolution actually supports the process of people's lifestyle towards modernization. Any industry has a process of emergence, prosperity, persistence or decline. If an automobile enterprise wants to succeed, it must overcome the chronic diseases and limitations of the industry itself, realize healthy self-development and sustainable profit model, and become a century old shop. This is the real success, because it means that it is no longer affected by the fluctuations in the development of the industry itself. Luxury car brand is the leader in this field, and it is the strongest representative of the automobile enterprises to the industry fluctuation immunity. The automobile values based on the automobile products it provides have been recognized and accepted by consumers, which is the key to its healthy development.


Therefore, luxury car brand is a great fortune for any developing car enterprise. But at the same time, it is also announced that the development of Volvo ultimately depends on Volvo itself, which lies in whether the car value it provides still has a sustained appeal to consumers. This is why luxury cars are the foundation of luxury cars.


Geely's acquisition of Volvo, for Volvo, Geely can bring its greatest value, one is to provide a sea god needle for Volvo's temporary ups and downs. This dinghaishen needle is a large amount of capital injection. Secondly, as an automobile enterprise from China, which is the world's No.1 but also a developing automobile market, Geely's another great value to Volvo is to realize the deconstruction of Volvo, a luxury car brand, to a certain extent. That is to help Volvo realize non luxury car to a certain extent, and create luxury car products closer to civilian consumption, so as to meet the needs of consumers in the Chinese market. It is difficult to build a luxury car brand; It's not easy to plan civilian products of luxury car brands from a strategic perspective. From the perspective of the development of China's auto market, it is this psychological advantage that gives countless Chinese auto entrepreneurs continuous market confidence. At present, what Audi, Mercedes Benz and BMW are doing is also a "civilian" movement of luxury cars in order to catch the crazy Chinese consumers. But for any luxury car brand, the popularization will be limited, otherwise its luxury car brand will face the crisis of real deconstruction sooner or later. Of course, that's the last word.


"Geely acquisition" itself has made the most powerful public opinion preparation for Volvo's made in China and popularization. In this acquisition, Li Shufu is a stone with three birds. Just as the news of Geely's acquisition of Volvo came out last year and made a big profit for Geely in the stock market. From the development experience of China's joint venture automobile enterprises, especially after the hot automobile market, the public opinion offensive has always been the magic weapon for automobile enterprises to succeed. It can be said that on the issue of Volvo's sinicization, Li Shufu has half succeeded. By the way, he also told the Chinese auto industry and media what is real public relations.

  After the public opinion offensive brought about by the acquisition itself is over, Volvo's sinicization and democratization can be realized naturally. Of course, Geely's task in this respect is still very heavy.
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