In the car industry, there have always been some high-profile deals. Recently, the old topic of Geely's acquisition of Volvo has been turned up by netizens again. Back then, Geely boss Li Shufu spent $1.8 billion to pocket Volvo, a century-old brand, and now Volvo's market value has soared to $51.5 billion, is this deal worth it? Netizens are arguing!
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Let's talk about Volvo, an old Swedish horse. Back then, Volvo was infinitely beautiful, but who would have thought that when it was under Ford, it was like an eggplant beaten by frost, and it was once sluggish. But just when everyone thought that Volvo was going to be cool, Geely boss Li Shufu stepped forward and took it into his arms at a price of $1.8 billion. This move caused a lot of controversy at the time.
Some people say that Li Shufu is crazy, spending so much money to buy a "half-dead" brand; But some people say that Li Shufu has a unique vision and sees the potential and value of Volvo. The latter seems to make more sense now. After Geely acquired Volvo, Volvo was like a chicken blood and glowed with new vitality. Sales have soared, and the brand's valuation has soared, from $1.8 billion to $51.5 billion, an increase of nearly 30 times!
This time, netizens couldn't sit still. Some people cheered that Geely had picked up a big bargain, and Volvo, the old horse, had finally found a new Bole; But others questioned whether the deal was worth it. After all, $1.8 billion is not a small amount, and it is still unknown whether Geely can make money back from Volvo.
Zhengfang netizens said: "Geely's acquisition of Volvo is definitely a wise move! Volvo's brand value, technical reserves, and global sales network are all valuable resources. With these resources, Geely can quickly enhance its brand influence and market competitiveness. Moreover, Volvo's advantages in safety performance can also be used by Geely to improve the quality and safety performance of Geely cars. Such an investment is definitely worth the money! ”
Netizens on the opposite side retorted: "Although Geely's acquisition of Volvo has brought a lot of benefits, the price paid is also too great!" $1.8 billion is not a small amount, and it is still unknown whether Geely can make money back from Volvo. Moreover, Volvo and Geely are two different brands with different cultures and market positioning. It is still unclear whether Geely will be able to successfully integrate Volvo's resources. Such an investment is too risky! ”
In fact, the arguments of netizens are not unreasonable. Geely's acquisition of Volvo does have a lot of risks and uncertainties. But then again, there is no benefit without risk. Geely's willingness to take risks is a testament to their courage and courage. As for whether the deal is worth it? I'm afraid only time will tell.
In short, Geely's acquisition of Volvo caused quite a stir in the automotive world. Whether it's worth it or not, it's a historic deal. For both Geely and Volvo, this is a new beginning. I hope they can continue to move forward hand in hand in the future and create more brilliance!