Volvo abandons merger with Geely and will seek independent listing

The previous merger plan of China's Geely Automobile and its affiliated company Volvo has been officially shelved. According to the joint statement of the two companies, the two sides will carry out closer cooperation in the fields of autonomous driving, powertrain, electrification, etc. on the basis of maintaining their independent structures. The cooperation plan announced in February last year has been abandoned, and Volvo may seek an independent listing.

Recently, Volvo CEO Hakan Samuelsson said in an interview: "This is to maintain growth momentum. The impact of mergers is not always positive. Excessive internal attention may undermine the city's motivation to move forward."

Samuelsson said that Geely Auto and Volvo will strengthen the development of electric vehicles, and the powertrain businesses of both parties will be merged into another separate company. He gave a positive evaluation of Daimler's joining, because Geely's Li Shufu is Daimler's largest shareholder. Daimler announced in November last year that it would jointly develop electrified gasoline engines with Geely.

Samuelsson said: "Volvo has the potential to raise funds from the stock market as an independent company." The company announced its IPO plan in 2018, but it was postponed because initial feedback from investors showed that the market valuation of the company was lower than expected. Volvo has not yet decided to restart the IPO.

Geely Auto's parent company Zhejiang Geely Holding Group acquired Volvo for US$1.8 billion in 2010. The two companies will share vehicle platforms and smart networking technologies in the future, and Volvo will use its global sales channels to promote the Lynk & Co brand it jointly owns with Geely.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.