An all-new Geely model based on the Compact Modular Architecture (CMA) developed by the joint R&D Center in Sweden formed by Geely and Volvo Cars will make its global premiere at next year’s Geneva Motor Show, according to Li Shufu, chairman of Geely Holding Group and Volvo Cars.
“The new car will then hit the market at yearend and represents the first fruit born by the product development integration between Geely and Volvo Cars,” said Li.
The joint R&D Center was established in Gothenburg two years ago and the CMA scalable architecture platform underpins future C- and B-segment vehicles for both brands.
“With the introduction of this new model, Geely will embark on a healthier and faster path toward transformation and upgrading,” said Li.
Li indicated that Geely’s successful integration of Volvo Cars is built on respect, adaptation, inclusiveness and blending, which helped the two companies bend the “77 Rule” in international acquisition: 70 percent of acquisitions fail to achieve anticipated business goals and 70 percent of those that fail is due cultural factors.
“Eastern and western cultures can be integrated,” said Li. “What Geely depended on was communication, trust, respect laws and cultures of the two countries and delegate power to management.”
Geely’s overseas acquisition strategy, according to Li, has begun to gain respect from the world over. Not only has it learned much experience about integrating multinational companies through the Volvo Cars acquisition, it has also effectively helped Geely integrate into the world.