As we all know, the automotive industry is a capital-intensive and technology-intensive industry, and in order to gain a foothold in this industry, it requires strong financial strength and technology accumulation.
For a fledgling automobile company, it is even more difficult to become a first-class in the industry in a short period of time.
However, Li Shufu, the founder of Geely Automobile, made an astonishing move: in 2010, he wholly acquired the Swedish car brand Volvo with a huge investment of 13 billion yuan, which shocked the industry for a while.
You must know that Geely Automobile at that time was only a "small character" established for 13 years, while Volvo was a "time-honored brand" with a history of nearly 100 years.
There is a world of difference between the two, both in terms of brand influence and technical strength.
So, why did Li Shufu make such a big bet? He once explained: "If Chinese cars want to rise on the international stage, they must have their own high-end brands.
The acquisition of Volvo is an important step in Geely's 'going global' strategy.
It can be seen that Li Shufu's ambition is not small, and he hopes that through this acquisition, he can inject new vitality into Geely and enhance the overall strength of the company.
However, things didn't all go smoothly.
Due to cultural differences and different management concepts, there are many contradictions and frictions between Geely and Volvo.
At one point, it was rumored that Li Shufu regretted the acquisition.
However, he was quick to deny the claim, saying: "I have never regretted buying Volvo, on the contrary, I feel it was the right decision." ”
Facts have proved that Li Shufu's judgment was correct.
After several years of running-in, Geely and Volvo have gradually found the best way to cooperate, and the two sides have achieved complementary advantages in technology, management, and marketing.
The global influence of the Volvo brand has been further enhanced, and Geely has also launched more high-end models with the help of Volvo's technical strength, such as Borui and Binyue.
According to the data, Volvo Cars' global sales in 2022 will reach 615,000 units, a year-on-year decrease of 11%, but the profit margin will be the highest in history.
Geely Automobile will sell 1.43 million units in 2022, ranking first in Chinese brand passenger car sales for six consecutive years.
Today, Geely has become an automobile group with multiple brands and product lines, and its market value once exceeded 160 billion Hong Kong dollars, more than 10 times that of the acquisition.
In this sense, Li Shufu's gamble back then can be said to have laid the foundation of Geely Automobile.
Without the "trump card" of Volvo, it would be difficult for Geely to achieve today's achievements.
Of course, Geely's success is not accidental, but the result of years of hard work by Li Shufu and his team.
They have made great efforts in all aspects of automobile research and development, production, and sales, and have made great efforts to benchmark against the world's first-class and forge ahead.
It is with this "wolf" spirit that Geely can achieve "corner overtaking" in just over a decade and rank among the first echelon of the industry.
Looking back on Li Shufu's entrepreneurial process, he has a distinct "gambler" temperament.
From the initial investment in old-fashioned vans, to the later acquisition of British manganese copper, Malaysian Proton, and then to the big bet on Volvo, Li Shufu really makes people sweat every time he makes a move.
But it is with this courage and courage to dare to think and dare to do that he can lead Geely to success step by step.
Of course, any gamble comes with great risks.
For Li Shufu and Geely, there is still a long way to go, and they still need to deal with the challenges brought about by industry changes such as electrification and intelligence.
But one thing is for sure, as long as we uphold our original intention and keep our feet on the ground, Geely will be able to ride the wind and waves and go further.
What do you think about this? Feel free to interact with me in the comment section!