Geely can't get core platform technologies

On December 23 2009, the United States Ford Motor Company and China's Zhejiang Geely Holding Group Co., Ltd. together announced that the two sides have reached an initial agreement about Ford selling its Volvo Car Corporation to Geely.

Geely chairman Li Shufu said in an interview acquisition of Volvo is to make China's auto industry reach world level in terms of technology. Mr. Li said: “the most significant thing for the acquisition is that China's automobile industry's technology could reach world level, especially in the security-related technologies such as energy saving and environmental protection technology.”

There is no denying the fact that as a luxury car brand in the world Volvo indeed has unique advantage in safety and four-wheel drive system technology. Ten years ago, in addition to considering Volvo is a luxury brand, Ford paid more attention to Volvo’s core technology. Undoubtedly, Geely could have access to high-end mature products and advanced technology of Volvo. Nevertheless, in the past ten years Ford has already fully integrated Volvo into its European system. There is no doubt that in the past few years Ford of Europe’s platform is the best but that could also hurt Volvo to a large extent since many people have seen Volvo as Ford cars which is under the pretext of luxurious coat.

Although Ford failed to operate Volvo very well, it has got all Volvo’s core technologies. What’s more, since product research of Volvo long-term rely on Ford's development platform so that Volvo's R & D team was mainly to carry out improvements, refinement, NVH in internal and external decoration, and optimization of high-strength materials so as to further enhance Volvo’s safety which is essential to maintain the image of luxury brands .Based on the above fact, I have to doubt that Volvo has lost the R&D capability of generation product platform.

Core of platform is R&D of its common parts whose re-design represents product replacement. However, distinction between different products on a same platform is accomplished by design changes of parts such as the exterior trim, instrument panels. Additionally, on a same platform common distinction between different brands also includes the configuration and tuning of power and price adjustment of suspension system in order to give drivers a different driving experience and thus reflect the brand image, typically such as Toyota CAMRY and LEXUS ES. (Translator: Qinghua Wade)

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