Geely Holding Group Chairman Li Shufu. Visual China map
On April 26, at the China Automotive Forum in 2018, Li Shufu, chairman of Geely Holding Group, pointed out that under the premise of not affecting the independence of the company, market-based collaboration will not change the companyâ€™s strategic autonomy and will not be involved. Antitrust competition review.
In the past six months, Li Shufu and Geely have announced the acquisition of 8.2% shares in Volvo Group and acquired 9.69% of the voting shares of Daimler AG, the parent company of Mercedes-Benz. This has become the largest shareholder of the two companies.
Li Shufu once again explained the investment logic of the two acquisitions. With the rapid iteration of new automotive software and electronic systems, the automobile is facing a complete transformation of business models, customer needs and competitive models, and auto companies need to reposition their values. In the past two decades, the lack of scale and inefficiency of car manufacturers has been replaced by travel service providers and new carmakers.
Although China is currently the worldâ€™s largest consumer market for cars, Li Shufu believes that it is not possible to offset the challenges by relying on domestic sales growth. For the common challenges of the global automotive industry, Chinese auto companies need to jump out of the borders of national borders. â€œWe must do While respecting brand independence and management autonomy, it is also possible to seek synergy globally to generate economies of scale and reduce risks, as well as to enhance product returns and staff employment while protecting product differentiation and respecting intellectual property rights. ."
Li Shufu added that Geely hopes to consolidate the advantages of vehicle manufacturing while studying online digital solutions. Similarly, Daimler and the Volvo Group are also facing the challenges posed by new technologies. In fact, car companies should work together to develop emerging technologies and build common systems.
"These cooperations, under the premise of not affecting the independence of their respective companies, legally, compliantly, and transparently launching market-based collaboration will not change the strategic autonomy of their respective companies, nor will they involve the risk of anti-monopoly competition review." Li Shufuâ€™s confidence was due to the experience of Geelyâ€™s overseas acquisitions. Geely acquired Volvo Cars, London Taxi Company, shares in Malaysiaâ€™s Proton Motors, and controlled British Roads Sports Cars, as well as other companies such as Flying Car Tai Li.
Among them, after acquiring Volvo Cars from Ford Motor Company in 2010, Volvo Cars has achieved comprehensive growth in domestic and overseas markets. Li Shufu said that Geelyâ€™s governance experience is to protect brand and product independence. In the automotive industry, market-oriented joint ventures and cooperation will exist for a long time. As long as they are legitimate and mutually beneficial, bilateral and multilateral cooperation can be discussed. "This is the charm of the market economy."
According to Li Shufu, there are three types of automobile industry today: The first is an auto company that actively adapts to changes in the industry, proactively changes, and has the ability to change. The second is an auto company that adheres to traditional thinking, does not actively change or wants to change but does not have the ability to change. The third type is the new vehicle builders. Among them, the second type of enterprise has the greatest difficulty, and it is difficult for traditional thinking vehicles to make a successful transition.
Li Shufu further stated that car companies need to be aware of and unite to create their own shared digital platform to form a competitive advantage in automotive mobile technology and related digital technologies. But you can't overly believe in Internet thinking, and you can't abuse the concept of the Internet. He believes that extensive alliances within the industry are the cornerstones of ensuring the commercial feasibility of new technologies, and new opportunities for R&D investment should also pay off.
Geely is also exploring new business models in the automotive industry.
This year, Geely Holding Group changed its own definition of the company from a car manufacturer to a â€œglobal leader in electric mobility and travel servicesâ€, and placed the Caofei special-purpose vehicle, a strategic travel-oriented new energy vehicle sharing travel service platform of Geely Group. Geely Automobile, Volvo Cars, Collar Cars and other brands are equally important.
Li Shufu said that Geely launched the Cao Cao special car, covering more than 20 cities across the country, the platform operating more than 16,000 vehicles. With the expansion of the service in the international arena, investment must also pay off, rather than follow the trend of burning money, the so-called Internet thinking can not cure all diseases.
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