The car brands Volvo and Geely now fall under the same Chinese Zheijnag Geely Holding Group as sister brands. However, the manufacturers are now announcing that they are keen to continue together as one company.
Volvo Car and Geely Automobile Holdings Limited have announced this in the run-up to a concrete proposal. The Swedish and Chinese brands are now working together to create a working group that can then start working on a proposal for the merger. This proposal must then pass through the various councils within the car makes.
The merger would not only bring Geely and Volvo under the same company, but Lynk & Co and Polestar would also move to the new company. The amalgamation would save a lot of costs, but also offer opportunities in the field of technological development.
The combined company would gain access to the capital market via Hong Kong, followed by a stock exchange listing in Stockholm. It is not yet known when the proposal will be worked out. Li Shufu, chairman of the Geely Holding Group, said he was looking forward to exploring the possibilities together with Volvo’s CEO Håkan Samuelsson.