Volvo is planning to merge with its parent company, Geely. The two carmakers plan to collaborate to develop a single powerful entity in the global car market. Volvo is a Swedish carmaker. The Chinese giant Geely owns Volvo since 2010 and now plans to merge it to form a single entity. Though Geely owns Volvo since 2010, they have remained two separate brand names in the global car market. Further, Geely Automobile Holdings owns brands like Lotus, Lynk&Co, Proton and LEVC.
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Volvo’s new venture, Polestar is also owned collectively by Volvo and Geely as well! The proposed deal aims to merge Volvo with Geely Automobile Holdings to form a single firm proposing an accelerated financial and technical synergy. With the scale, knowledge and resources, both the automakers collectively aim to be a leader in the ongoing transformation of the automotive industry.
Both Volvo and Geely have established a joint working group headed by the Swedish automakers boss Håkan Samuelsson. This group will develop and send a proposal to each board. They aim to finalise the creation of the merger by the end of this year.
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Both the automakers are already benefitting from the technology they share. The Chinese automaker has helped Volvo to revive since they bought it from Ford in its struggling days. Volvo has grown in terms of technology and worldwide sales. This merger would allow both the firms to invest in new technologies such as electrification, connectivity and self-driving technology.
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With this merge, both the automakers can benefit by sharing the technologies and manufacturing facilities. This will surely help them to stand against competitor giants like the Volkswagen group and the newly merged PSA Group and Fiat Chrysler Automobiles. Volvo can also get the opportunity of increasing their production by using the huge facilities owned by Geely in China.
This is interesting, I know they will come up with a very nice car after merge.