largest in history Chinese car industry Acquisition: Chinese concern Geely buys the Swedish company Volvo from American Ford. The agreement was signed yesterday in Gothenburg, in the presence of Chinese Vice President Xi Jinping, who arrived in Sweden on an official visit in connection with the 60th anniversary of the establishment of diplomatic relations between the two countries, and Swedish Vice Premier and Industry Minister Maud Olofsson. Deal value: $1.8 billion, all necessary funds for the acquisition have already been received, at the same time Geely has also prepared the capital necessary for further development production of Volvo cars.
Swedish media reports emphasize that "the agreement provides for the preservation of Volvo's independence, the continuation of its commercial plans and further development." Upon completion of the transaction, the company's headquarters will remain in Gothenburg, Geely will also retain Volvo's factories in Sweden and Belgium. In addition, the new owner expects to build Volvo factory in China "to saturate the Chinese market with cars of the company." The agreement states that Geely will maintain good relations with Volvo workers and employees, its trade unions, distribution agencies, and especially with consumers. “Volvo will be managed by Volvo management. The enterprise will be granted independence in a strategic perspective. It will operate on its own business plan. We are committed to maintaining the brand's identity and see Volvo as a Swedish company with a strong Scandinavian tradition,” said Geely Chairman Li Shufu.
Volvo, like some other assets, Ford wanted to sell since 2008, when this company and many of its competitors - both in the US and around the world - faced serious financial problems. “The main goal of the deal is to find a new owner who shares Ford's vision of Volvo's future. We needed to find a new owner who could grow the business and at the same time take special care of the unique features of the Swedish brand. And who is also responsible for the company's employees and the society in which we operate. We have found, and I am pleased to announce this, such an owner in the face of Geely,” says Vice President Ford Lewis Booth.
Volvo was acquired by Ford in 1999 for $6.5 billion. In total, 22,000 people work for Volvo worldwide, 16,000 of them in Sweden. Now the Swedish manufacturer assembles about 300 thousand cars a year - new plant in China should do the same. The trade unions gave their final consent to the signing of the agreement only last Saturday, after a meeting with Li Shufu and his explanations about the new leadership's plans for the future. “We are pleased to have entered into an agreement with Ford that allows us to preserve and enhance the legacy famous brand Volvo. The brand will remain true to its core values of safety and contemporary Scandinavian design,” said Li Shufu. According to him, the strategic goal of the Chinese corporation is to achieve the production of 2 million cars a year by 2015. The acquisition of a well-known brand raises the prestige of the Chinese auto industry. In addition, Volvo will open the more expensive segment of the European market and its distribution network to manufacturers from the Middle Kingdom.
Do you know where Volvo is made? The country of origin of this car deserves all the praise. It is produced in Sweden. The car is produced by the Swedish concern Aktiebolaget Volvo. The concern is engaged in commercial and engines and various equipment. Previously, passenger cars could also be purchased from the Volvo concern. Unfortunately, the car branch was sold to the Ford concern, called Volvo Personvagnar. In turn, Ford assigned it to Geely.
The corporate headquarters is located in Swedish city Gothenburg. From Latin "volvo" is translated as "I roll" or "I rotate".
history of the company
The company was founded by Assar Gabrielson and Gustaf Larson in 1915. In fact, it was a subsidiary of the popular bearing manufacturer SKF. The first production car Jakob OV 4 left the factory gates on April 14, 1927. She had an engine with a capacity of 28 Horse power And top speed 90 km/h
The country of origin of the Volvo car is beautiful! Who becomes the president of the concern in 1956? Of course, Gunnar Ingellau! He is a doctor of mechanical engineering and economic sciences. During his tenure, the company flourished. Export to the USA starts in 1956. In the United States in 1957, 5,000 Volvo cars were sold. The volume of car production is increasing. In 1956, 31,000 copies were made, and in 1971, 205,000 units were produced.
The country of origin of Volvo has a temperate climate, mainly due to the Gulf Stream. It is very pleasant to work here. It should be added that Nils Ivar Bolin also worked tirelessly at Volvo. He is the inventor of the three-point seat belt. This element was equipped for the first time in the world Volvo brands PV 444 and P120 Amazon.
Model P1800 is made in the form of a double sports coupe. It was released in 1960. And the production of the Volvo-144 began in 1966. It was this model that was equipped with a dual-circuit brake working system. And it was here that the deformable zones of the body were installed. This is an amazing Volvo! What country-manufacturer is able to invent such a candy? Of course, only Sweden.
In 1976, the creators of Volvo developed oxygen sensors Lambda Sond. In the same year, exhaust gas was generated.
The passenger department of Volvo Personvagnar was sold to Ford in 1999. The concern was able to sell the division for $6.45 billion. Volvo Personvagnar AB is known in the US as Volvo Cars. And since 1999, this branch has been transformed into a division of the Ford concern. But in December 2009 year Ford announces the sale of Volvo Personvagnar AB to China's Zhejiang Geely Automobile. The branch is now worth $1.8 billion. On March 29, 2010, the Chinese enterprise officially signs the documents. These are purchase papers. Volvo brand Cars at the enterprise Ford motor. The transaction was completed on August 2, 2010.
Management and owners
Why does everyone choose Volvo? The country of origin knows the answer to this question. To do this, you need to find out who is the largest shareholder of the AB Volvo concern? Of course, the Chinese concern Geely. Until 2010, Renault S.A. owned about 20% of the company's shares. She was then the largest owner. In 2012, these shares were acquired by the Chinese concern Geely.
Louis Schweitzer is Chairman of the Board of Directors of this excellent organization. And Leif Johansson holds the positions of executive head and president at the same time.
Organization's activities
On this moment the Volvo concern supplies trucks to the Swedes. In addition to trucks, the company supplies construction equipment, buses, systems marine engines, financial services and space components.
In general, the Volvo brand is owned by the Geely holding. The Volvo Group also manages the following brands:
- Renault Trucks.
- Nissan Diesel.
- Mac.
- Prevost.
- Nova bus.
The holding consists of nine production companies and eleven business divisions.
Volvo in Russia
The official sale of Volvo cars in the USSR started in 1989. It should be noted that the much-needed Sovtransavto have been purchased since 1973.
Trademark "Volvo" ... The country of origin is located in Northern Europe, in the center of civilization. Currently, the Volvo concern in Russia is represented by CJSC Volvo Vostok and OOO VFS Vostok.
Volvo has built a new plant in Kaluga. The launch of this production took place on January 19, 2009. The production capacity of this plant is very high. It is 15,000 trucks in year. Installation planned here Volvo models FM and This is the first full-scale commercial production trucks foreign brand in the Russian state. A little later, Volvo Truck Center-Kaluga was built on the Volvo factory territory. This center opened in the summer of 2009. Volvo Holding has adopted a comprehensive transport solution. Now production, sales and service are all done in one place.
Corporation
Consider one of the industrial companies belonging to the concern Volvo. The country of origin, Sweden, is proud of its brainchild, its carmaker. Volvo Trucks Corporation is among the top world leaders in manufacturing heavy trucks. This company was founded by Gustaf Larson and Assar Gabrielson in 1916. It is a subsidiary of the popular bearing manufacturer SKF.
Outside the gates of the factory first stock car left in 1927. The company gained complete independence from SKF in 1935.
In early 1928, the first truck appeared. It was called "LV series 1" and was an incredible success. It was equipped with a two-liter four-cylinder engine. Engine power was 28 horsepower.
Can anyone forget the Volvo? The country of origin will, on occasion, remind you of this concern. Indeed, in terms of volume in the world market, it is in second place. In 2006 Volvo Trucks sold 105,519 trucks.
Volvo trucks are considered comfortable and safe. The global international corporation Volvo Trucks Corporation includes industrial and design centers located in the USA, Brazil, Sweden and Belgium. It includes an incredible number of assembly firms around the world. Some enterprises represent the corporation as a co-founder along with local production groups. Of course, there are organizations directly owned by the Volvo Group.
Renault Trucks in Russia
The first Renault trucks appeared in Russia in 1912. IN Russian Empire the war ministry organized a run, and Renault took part in it.
In 2012, Renault Trucks celebrated its 100th anniversary on the Russian market. The company owns its own production workshop at the Volvo plant in Kaluga. In 2009, the production of the Premium Route tractor began. Today, heavy trucks of the Premium and Kerax models are assembled at the plant. At the end of 2014, it is planned to start production of the latest model line Renault Trucks trucks.
And in June 2013, an unforgettable ceremony was held in the Kaluga region. The foundation stone of the future plant was laid. This enterprise plans to manufacture cabins for cargo Volvo cars and Renault.
It looks like this deal will be the biggest financial event of the year in automotive industry after the PSA concern of the European assets of the firm General Motors. And not only in the automotive industry. Geely has announced the acquisition of an 8.2% stake in the Swedish concern AB Volvo, better known as the Volvo Group. The purchase agreement was concluded with the Swedish firm Cevian Capital, which until now owned this block of shares. As a result, the Chinese company will become the largest single shareholder of the Volvo Group and will receive the largest, sixth (15.6%) of the votes in the group's board.
The amount of the deal has not been officially disclosed, but experts estimate it at about $3.8 billion. The fact is that the Volvo Group is a large international concern that includes divisions for the production of trucks, buses, construction equipment, ships and industrial engines. The group has bought dozens of competing companies, it has its own factories in most countries of the world. For example, Volvo Trucks owns cargo firms, and (former Nissan Diesel), the Volvo Bus Group acquired many bus brands, including the North American Prevost and Blue Bird, there are many acquisitions on the account of the branch Volvo Construction equipment. The Volvo group also has its own plants in Russia: sites in the Kaluga region produce trucks and excavators.
The Swedish concern got rid of the passenger compartment of Volvo Cars back in 1999: at first it became the property of Ford, and after not very successful experiments with model range the Americans sold it in 2010 to the Geely holding. In light of the new deal, there appears to be a reunion of the companies under Li Shufu, the owner of the Chinese firm.
Recall that Volvo Cars has become the first and largest overseas asset of Geely so far. Although with the rise swedish brand business with the Chinese owners gradually went up the hill. Over the past five years, private holding Geely managed to enter the top five Chinese automotive market, buy a British cab manufacturer, a Malaysian auto company and American developer flying cars. And over the past year, the holding has also created two new automotive brands - and. However, outside the passenger car sector, Geely's assets have so far included only a small truck firm, Yuancheng.
Now everything can change. With the acquisition of the largest stake in AB Volvo, the Chinese holding becomes a major international concern. What, however, circumstances are pushing Li Shufu: the Chinese Communist Party not so long ago announced its desire to unite the three largest state automobile concern- FAW, Dongfeng and Changan. This is a complex and lengthy process, but the first mergers of small divisions have already begun, and as a result of the merger, a huge and powerful conglomerate may enter the scene, which it will be very difficult for other Chinese manufacturers to compete with.
The profits of the successful Swedish group will help Geely: experts estimate the income of Cevian Capital for 11 years of owning a stake in AB Volvo at two billion euros. However, the parties have so far only announced an agreement in principle. Nomura International and Barclays Capital Securities can act as counterparties: after the deal is approved by the antimonopoly authorities, they will buy back the shares owned by Cevian Capital and sell them to the Geely holding. This will happen, of course. not earlier than next year.
Russian Volvo sales this year, as with other auto brands, it still leaves much to be desired: after the collapse of the market, there are significantly fewer buyers in car dealerships. Sales of the new flagship model XC90, which were supposed to start in March, were eventually postponed and will start only now (the exact dates are still unknown). Together with a noticeable reduction in prices for the model range, announced at the end of April, this should improve the company's business in Russia. However, despite the local Volvo problems, passing into Chinese hands, demonstrates in last years more than decent results, having managed to retain old customers and attract new ones.
In 2010, the Chinese did not just acquire the first European brand that came to hand. They bought a company best known for security technology. It was with this that Chinese auto companies existed from the very beginning (and still remain today) serious problems: many cars were absolutely uncompetitive in terms of European or American standards.
Five years ago, the global economic crisis forced the American concern to get rid of unnecessary assets, one of which was the passenger division of Volvo.
The Swedish manufacturer was making losses, and Ford did not want to invest in the company during the crisis. As a result, the Americans sold Volvo Chinese auto giant Geely for $1.8 billion. At the same time, in 1999, Volvo cost Americans 3.5 times more - $6.5 billion.
When Volvo was taken over by the Chinese, many auto experts and fans of the brand seriously expressed fear that Volvo would lose its image and that the Chinese, taking advantage of Swedish technology, would not invest heavily in it.
But new owner Volvo hastened to assure that the brand will be granted independence in a strategic perspective and the opportunity to work on its own business plan.
“Cooperation with the Swedish brand is, first of all, safety technologies. Volvo has a very strong position in this aspect of the automotive industry, said Geely CEO Li Shufu at the end of April. “In addition, we are now focusing on research and development work on the creation of a new modular CMA platform (for the production of C-class cars). The C-class sedan will go into production in 2017 and will be the first car in new platform For small models CMA shared by Geely and Volvo. The successor to the Volvo V40 will get the same platform.”
“Based on this modular architecture, Volvo develops some products, and Geely develops others, its own,
Shufu says. “They have different directions and completely different characteristics, corresponding to positioning in their segments.”
However, here it is worth recognizing that Volvo did not initially count on such a format of cooperation. Shortly after the deal, Volvo's then CEO made it clear that no technical cooperation Geely is out of the question.
“We understand ourselves as part of a financial, not an industrial holding, so we maintain independence, which is very important to us. Geely and I work in completely different areas automotive industry which makes cooperation on a wide range of issues practically meaningless,” he said.
Well, a few years later the situation has changed, and it is not difficult to guess that the Chinese still managed to impose their vision of mutual cooperation on the Swedes.
For the star-struck Geely, Volvo's purchase opened up access to unique technologies security and other developments. But at the same time, the deal allowed Geely to become the first Chinese automobile company, deployed not only in the market of Europe and the USA, but also in developing countries, becoming a global brand.
At least such plans are declared by Li Shufu, who is called the "Chinese Henry Ford." In the near future, Geely plans to start exporting Swedish brand cars from factories in China to other countries. Among the export destinations, in addition to the United States, experts also name Russia. Shipments will be made from a factory in Chengdu in southwest China.
The Swedish company also does not hide the fact that it is quite satisfied with the cooperation. Main criterion- Increasing global sales.
According to Lars Danielson, head of Volvo China, 2014 was one of the best years for Volvo Cars. “More than 466,000 vehicles have been sold, all models,” Larson said. —
Business was also going well in Western Europe, which is also an important market for us. 56 thousand cars were sold in the USA. Overall sales were good, with our profits up 17% to $2.2 million.
However, the margin is still low.
Here you need to keep in mind the context. We invest a lot, invest in new products. It would be much easier to do what the whole industry does, and the profits would be different. But the plan is what it is."
The Chinese market for Volvo today is the largest - its share reached 17% of global sales last year. Sweden is in second place, the United States is third with 12%. Next come the UK (about 9%) and other European countries - 7%.
“I don’t think that Volvo, having become the property of Geele, could lose something,” says the general director of Strana radio, a well-known auto expert. — Quite the opposite: the brand has retained all its positions.
Yes, they had big plans to develop the brand on Chinese market, but no significant results have yet been achieved.
However, the fact that the Swedish brand is present in China, Europe and the US is already a good thing. Here we can cite as an example the fate of another Swedish manufacturer - Saab, which simply went bankrupt and ceased to exist.
According to the expert, when both companies announce joint technical developments, they are of a very specific nature.
“For Geely, buying a Volvo was the quickest way to get modern technologies automotive industry. They didn't really have any work of their own. Therefore, speaking about the joint development of two brands, one must understand that all technical base only Europeans provide, and the Chinese side provides funding. Therefore, it is logical that the combined technical Center two companies are located in Sweden,” he said.
As Denis Eremenko, CEO of PodborAvto, notes, the perception of the brand by Russian consumers has not changed since the moment it came under the wing of Chinese company. “If the build quality of cars, the design and positioning of the brand as a whole do not change, then the consumer does not think at all about who owns the brand,” Yeremenko shared his opinion with Gazeta.Ru. - The purchase of Volvo by the Chinese is just such a case, therefore, on demand from Russian buyers this circumstance had no effect."
The example of Volvo is not the only one. On the account of the Chinese - purchase by Dongfeng Motor Group 14% stake in struggling French PSA concern, acquisition of BAIC from Saab technologies. It is impossible not to recall the failed deal to sell the Hummer brand to the Chinese. In addition, it recently became known that the Chinese state-owned chemical corporation ChemChina plans to acquire the Pirelli tire brand for 7.1 billion euros.
But the same tactics are used not only by the Chinese. Indian has been owning for several years British Jaguar Land Rover and does everything not to be associated with the legendary premium brand among ordinary buyers.
Volvo was founded in 1915 in the Swiss city of Gothenburg as affiliated undertaking bearings manufacturer SKF. It was founded by former college classmates Assar Gabrielson, an SKF employee, and Gustav Larson. The idea to go into the car business came to young engineers in a restaurant, drinking beer and crayfish. Some time later, SKF management approved their idea and allocated funds for the development and production of the first cars.
The name Volvo is derived from the Latin verb volvete, which means "I roll." The Volvo emblem is a symbol of iron and the god of war Mars, who fought exclusively with iron weapons. The associations that this emblem is supposed to give rise to are reliability and durability.
In 1927, the first Volvo car appeared - a phaeton with open top And four-cylinder engine. It was called OV4, and also had an unofficial name - Jacob. It was not just the first Volvo car, but the first car made in Sweden. The Volvo Jacob had a powerful beech and ash chassis and sprung seats, a rarity in cars of the 1930s. Engine power of 28 hp could accelerate the car up to 90 km / h.
In 1928, Volvo released its first sedan - PV4, and two years later - its modification PV651, with a six-cylinder engine with a capacity of 55 hp. With. This model was used as a taxi in Sweden. In the same year, the first Volvo truck– Type 1.
On car showroom in Stockholm, in 1944, Volvo introduced the PV444. This passenger model became the "people's car" in Sweden, which was due to high quality at low cost. It was originally planned to assemble 8000 cars, however, due to great demand Volvo produced 200,000 vehicles. At the same exhibition, the first bus of the company was presented - PV60, with a diesel engine.
In 1951, Volvo switches to conveyor production. In the same year saw the light of the first family car Volvo Duet.
In the 1980s, the company began production of a new generation of cars. They were different modern design and more powerful engines, which have been modified to reduce fuel consumption. The main model of the 80s was the 760 sedan, which was equipped with six-cylinder gasoline and diesel engines. Up to 100 km / h, it accelerated in 13 seconds.
Today, Volvo is owned by the Chinese concern Geely, which bought it from Ford in 2010 for $1.8 billion. However, Volvo's headquarters remained in Gothenburg.
TechnologiesVolvo
Throughout its history, Volvo has paid special attention to the development of safety technology.
This Swedish manufacturer was the first to equip its cars with three-point seat belts, triplex laminated windshields and lambda probes - sensors that help reduce exhaust toxicity.
In the 1970s, Volvo developed the world's first child protection system - an extra pillow and a special rear-facing child seat.
Much earlier than other companies, Volvo began to use its own innovative safety solutions on its cars, for example, City Safety, which prevents low-speed collisions.
Volvoin motorsport
Since 2007, the team has been taking part in the world championship in road racing among touring cars. Best Achievement- 11th overall in 2011.
From time to time, Volvo exhibits its cars at the famous Dakar Rally. In 1983, the team won the small truck class.
Besides concern Volvo participates in the European Truck Racing Championship. Renault-branded cars, which are produced at Volvo factories, won in 2010 and 2011.
Interesting Facts
Volvo is the first company in the world to set up its own dedicated accident investigation team. Based on the data from this unit, new security systems for Swedish cars are being developed.
Volvo P1800, assembled in 1966, got into the Guinness Book of Records as the car with the most high mileage. It amounted to 4,200,000 km.
King Carl Gustaf of Sweden travels on the roads in a small hatchback.
Volvoin Russia
The history of Volvo in Russia began in 1973, when state company Sovtransavto purchased Swedish trucks for international transportation. The representative office of the brand was opened in Russia in 1994. Especially popular in the 90s were the models and V40 KOMBI. In the 2000s, S-series sedans were running models in Russia. Swedish cars have become popular among Russian car enthusiasts due to their classic design, high quality and reliability. These factors even influenced the formation of such a concept among motorists as Volvo - the driver. That was the name of the one who was not in a hurry, observing the rules traffic, appreciating the comfort and safety of the motorist.
The machines were well suited for operation in difficult weather conditions countries. In addition, their low cost in comparison with cars of competing brands ensured their success.
Present on the Russian market today big choice Volvo cars: C70 hardtop coupe, sedans and wagons, V60 and V80, as well as all-wheel drive crossovers XC60, XC70 and . Over the past six years, Russians have been buying about 20,000 Swedish cars a year. The most popular model is the XC90. Sales of this crossover account for about 30% of all models presented today.
The company has a small truck assembly plant in Zelenograd. In addition, in 2009, a Volvo Trucks plant was opened in the Kaluga region, which produces up to fifteen thousand trucks a year. car manufacturing plants in Russian Volvo not planning to open yet.
