Do you know how many subsidiaries Geely Group has now? How many car brands are shareholders? I guess there shouldn't be many people who can say the whole thing.
In the passenger car sector, Geely currently owns Geely Automobile, Lynk & Co, JiKr Automobile, Geometry Automobile, and Proton Automobile, all of which are wholly-owned subsidiaries of Geely Automobile Group. Volvo Cars, Polar Star Motors, Mercedes-Benz Smart, Lotus Motors, and British Motors are also subsidiaries of Geely Group, but the proportion of shares is different.
In addition to the passenger car sector, Geely Group also has 6 companies in the commercial vehicle sector; 25 companies in the technology company sector, with businesses in new energy, mining, general aviation, commercial aerospace, motorcycles, innovation incubation, etc.; 3 travel companies including Cao Cao Travel; 6 financial companies; and 6 educational institutions...
Although Geely already has such a huge business sector, they have no intention of stopping.
On May 10, Geely Group announced that it has signed a share subscription agreement with Renault Korea Automobile, a Korean subsidiary of Renault Group. According to the subscription agreement, Geely Automobile intends to subscribe for 34.02% of the shares of Renault Korea Automobile, and after the completion of the transaction, the majority shareholder of Renault Korea Automobile will remain Renault Group.
In fact, as early as August last year, Geely and Renault had already held hands, and the two sides jointly announced that they would focus on the development of hybrid products. In January this year, Geely Group and Renault Group signed a new cooperation agreement, which plans to launch hybrid models in the Korean market and launch them to overseas markets. The new car will adopt Geely's CMA modular architecture, other styling, after-sales and other aspects will be responsible for Renault, and the new car will be manufactured by Renault Samsung Automobile's plant in Busan, South Korea, and is expected to start production in 2024.
It can be seen that Geely's acquisition of Renault shares is hoping to expand the "main battlefield" to South Korea and even more overseas markets. In 2021, Geely Automobile's overseas export volume reached 115,000 units, an increase of 58% year-on-year, and its overseas business covered 28 countries around the world, and its overseas sales and after-sales outlets reached 227.
In November 2021, Geely released the "Longwan Action", which said that it would comprehensively promote the process of globalization and achieve technology going to sea, and its annual overseas sales would reach 600,000 vehicles by 2025. The acquisition of Renault is also an important step in Geely's globalization process. And for Geely, it is also of great significance to enter the US market through the convenience provided by the Rok-US Free Trade Agreement, export products to the United States, the world's second largest automobile market, and further expand Geely's international influence.
For Renault, Geely's entry into the ownership is actually a bit of a snow and charcoal. In 2021, Renault officially withdrew from Chinese cars, and its business in China was almost at a standstill. This time with Geely, it also allows Renault to increase the possibility of returning to the Chinese market. And compared with Geely, Renault's achievements in new energy are much inferior, in the case that new energy has become a global development trend, Renault also urgently needs a large market for new energy products, it can be said that Geely has also solved the big trouble for Renault to a certain extent.
Detective Che has something to say
At present, well-known domestic car companies are deploying their own globalization process, Such as Great Wall Motors, SAIC Motor, Chery, etc., but the way each car company globalizes is slightly different. For example, the Great Wall pickup truck is very famous abroad, and they have also built a new factory in Russia; Chery is famous for exporting early, and Chery in Brazil is also everywhere; SAIC Motor is playing a combination of passenger and commercial punches; Geely Automobile is to open up the international market by way of acquisition, so who will Geely Automobile target next?