A few days ago, it was reported that Geely Automobile would invest 300 million US dollars to invest in Weilai. As soon as the news came out, it attracted many attention.
Editor’s note: This article is from the micro-channel public number “DoNews” (ID: ilovedonews) , Author: Jiang Bojing.
After the “marriage” with Aston Martin can no longer be achieved, Geely Automobile has a new “gossip target”. This time, it’s Weilai!
It was reported that Geely Automobile will invest 300 million US dollars to invest in Weilai. As soon as the news came out, it attracted much attention.
However, both parties involved were undecided about this news: Geely Automobile’s relevant person in charge responded to the media saying that he did not know the matter and did not comment on market rumors; Weilai responded that it would not comment on the rumors and invested in financing. Information disclosure shall prevail.
Of course, if Geely Automobile thinks that Weilai will become the hope of China’s new energy vehicles, we cannot rule out a miracle.
Whether or not you have invested in Weilai, Geely Automobile is “multi-faceted” and actively looking for a breakthrough in the automotive field!
At present, Geely’s main task should be to facilitate the merger with Volvo.
After ten years of holding hands, Geely Automobile will merge with Volvo Cars. The goal of Geely Automobile is to achieve the effect of 1 + 1 = 3 after the merger with Volvo Automobile Business, at least greater than 2.
On February 10, Geely Automobile issued an announcement saying that the company’s management is in preliminary discussions with the management of Volvo Cars AB (Volvo Cars) to discuss restructuring through the business merger (recommended transaction) of the two companies. possibility. This move will retain the uniqueness of each brand of Geely, Volvo, Link and Polestar. It is proposed to list the combined business in Hong Kong and Stockholm to enable it to enter the capital market.
Although it is still only a plan, but looking at Geely’s results last year, we can see the urgency of Geely’s merger action in order to change the status quo.
On this issue, we must make clear why Geely Automobile has this plan, because Geely Automobile is under pressure from performance.
According to Geely Automobile’s financial report, Geely Automobile ’s “total sales volume for the entire year of 2019 was 1,361,560 units, a decrease of approximately 9% compared with the same period last year, and exceeded the Group ’s full-year sales target for 2019 of 1,360,000 units. “That is to say, Geely Automobile has completed its sales target for 2019, but its total sales volume has decreased by 9% year-on-year.
This is a mixed result. It can only be said that when Geely Automobile set its sales target for 2019, it was very wise and predicted the difficulties in 2019. With regard to the sales target for 2020, Geely Automobile is slightly more optimistic: “Given that the Chinese passenger car market is currentlyThere is uncertainty. The board of directors initially set the Group’s sales target for 2020 to a conservative level of 1,410,000 units (including the sales target for the Link Group brand of cars), which is an increase of about 4 from the total sales achieved in 2019. %. “
However, in the current automotive industry environment, this target of about 4% growth is not easy to achieve.
If this goal cannot be achieved, Geely’s situation in 2021 will be awkward. The Geely people look long-term, and it should be more than 2021. At present, SAIC is still strong. If FAW is able to go public, it cannot be underestimated. BAIC also has its own goals. If Geely does not make changes, it will be difficult for Geely to become the leader of the Chinese automobile industry in several years. Therefore, the merger of Volvo cars became the “key” to solving the problem.
In 2019, Volvo Cars ’global sales reached 705,400 units, a year-on-year increase of 9.84%. If Geely and Volvo are combined into one, the new “Geely Volvo” will have a big increase in key data such as sales.
The key is that with the help of Volvo technology, the original Geely brand will have greater development. In addition, the original Volvo brand and the original Geely brand did not have much conflict on the product. As a result, the prospect of the merger of the two in the short term is indeed good. And, with this experience, Geely may still do the same-merge other multinational companies from the business.
Of course, it is still a tentative trial. Whether the merger succeeds is still unknown. However, the outlook is promising.
Apart from the merger with Volvo, Geely Automobile should be looking for new acquisition targets.
The “fate” with Aston Martin shows that Geely Automobile has the goal of entering the luxury sports car market; the “gossip” with Weilai Automobile should not be “unfounded.”
Geely Automobile should be drawing its own car blueprint. However, it is also forced by the status quo.
The sales announcement issued by Geely Automobile on February 13 states: “The total sales volume of the Group in January 2020 (including the sales volume of the Linke brand cars sold by the Group’s 50% equity joint venture company) is 111,838 units, a decrease of approximately 29% compared to the same period last year and a decrease of approximately 14% compared to December 2019, and reached 8% of the Group’s 2020 full year sales target of 1,410,000 units. “
Geely’s sales in January decreased by 29% year-on-year and 14% month-on-month. And January sales are only 8% of the target sales, which means that if Geely Automobile wants to achieve excellent results in 2020, it is very difficult. Although, January is not the traditional peak sales season.
In this sales list, 4,762 new energy vehicles were sold, accounting for 4.26% of the total sales of 111,838 units in the month. In January 2019, 9,022 new energy vehicles were sold, total sales in the monthOf the 158,393 vehicles, 5.7%. In addition, in January 2020, Geely ’s export volume “reduced by approximately 68% year-on-year to 2,265 units”.
From this January sales announcement, Geely Automobile needs to solve the problem of new energy vehicles. Since the foreign market is not good, it must continue to increase its efforts in the domestic market. Then, Geely Automobile may work on new energy vehicles and mature foreign car brands in the future. After all, the domestic market still recognizes international big names.
From the above, the failure of Aston Martin’s plan and the rumors of Weilai Automobile have a deep purpose. Obviously, Geely Automobile should not and will not be satisfied with the existing structure. It will definitely “face all aspects” and break through the status quo! In the future, let’s see what actions Geely Automobile will take!
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