Last time we talked about how much money Geely spent to acquire Volvo. In fact, we don’t know the specific numbers, so don’t get excited and put down the keyboard. Although we don’t know the specific numbers, we can make a rough guess based on the situation at the time.
About money, it is nothing more than how much to buy, how much to sell, and where does the lucky money come from? You must know that the lingering influence of the financial crisis had not yet been completely eliminated, and financial institutions were tightening their finances, making it difficult to lend money. It is said that only China Construction Bank Zhejiang Branch lent Geely US$200 million at that time. This number sounds quite large and can last us several lifetimes, but it is undoubtedly a drop in the bucket for the acquisition of Volvo.
How did the acquisition funds come from? It relied on local government financing platforms. The Beijing government that initially reached a cooperation agreement, but when it was about to pay out real money, for some reason, the money was withheld. At that time, the negotiations between Geely and Ford entered a new stage. Geely needs to clarify the financing structure before signing the contract. It was at this stage that the Chengdu government contacted Li Shufu and expressed a strong interest in the Volvo project.
As a result, Geely borrowed money from several state-owned institutions in the form of one-year loans, guaranteed by the Chengdu Municipal Government, and counter-guaranteed by Li Shufu himself for life, and successfully raised 3 billion yuan from Chengdu City.
No matter how arduous the process is, we finally have money. It is roughly estimated that it should be around 10 billion. How much did Geely spend to acquire Volvo? After many negotiations, Geely’s final offer was US$1.8 billion, which was more than 80% lower than the previously estimated US$10 billion. Due to the huge changes in the deal amount, Ford said it needed to be decided through a board meeting, and negotiations to acquire Volvo were suspended for a month.
During this period, Li Shufu also personally led a team to Sweden and Belgium, and visited all trade union leaders and relevant government departments. After unremitting efforts, the Geely Volvo project team and the union finally reached a final agreement on March 27, 2010. The agreement for Geely to acquire Volvo was signed in London the day after the agreement was reached. There were documents piled half a meter high on the table, and it took nearly half an hour to sign them one by one.
On August 2, 2010, in London, England, Geely successfully delivered 100% equity in Volvo Cars and related assets. These related assets include the intellectual property rights we mentioned earlier. Geely became China's first automotive multinational company. . This means that Geely owns the ownership and use rights of the Volvo sedan trademark, 10,963 patents and exclusive intellectual property rights, 10 series of sustainable products and product platforms, the production capacity and good facilities of approximately 560,000 vehicles from the two major OEMs, 1 engine company and 3 parts companies, an independent database for the development of complete vehicles and key parts, the R&D system and capabilities of 3,800 high-quality scientific research talents, and a sales and service network of 2,325 outlets in more than 100 countries and regions. wait. These contents have played a great role in Geely's subsequent development.
It took Li Shufu three years from the establishment of the "V Project" team in June 2007 to the official completion of the deal in August 2010 and becoming Volvo's new boss. In an interview with French Reuters that day, Li Shufu expressed his feelings this way: "We have realized our dream of acquiring Volvo, but this is not our final plan. This is just a new starting point." Indeed, Volvo's acquisition has a great impact on Geely It can be said that Geely has embarked on a rapid development path. Geely's today is inseparable from the acquisition of Volvo.
Back in time, we have all witnessed with our own eyes how Volvo regained its glory step by step under the Geely banner and ushered in its highlight moment; we also witnessed how Lynk & Co, the "crystal of love" between Geely and Volvo, grown up. It's hard to say who succeeded the other in Geely and Volvo, but it is undeniable that they both got what they wanted, which is to win. Okay, the story of Geely and Volvo is over here. Which brand do you still want to hear the story of? You can leave us a message. See you next time. Bye~
This article comes from Autohome Chejiahao The author does not represent the views and positions of Autohome.