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Acquisition of Aston Martin? Geely: Don't ask, buy!

Publish Date: 2022.10.05

In September, Mr. Gu thought that the biggest thing that happened in the circle was the launch of a new model of the ideal car. But nobody expected Geely to focus on itself with a piece of "official document".

Everyone who has known Li Shufu knows that he has always been known as a "car maniac". In the past, we can know from the beauty leopard model that he has always had a "sports car dream"; Geely is also known as the "king of acquisition". It has "earned" Volvo, Lutes, Smart, Proton, Jixing and other brands.

Recently, Geely Holding, which has been committed to "buy, buy, buy", announced that it has completed the acquisition of 7.60% shares of Aston Martin Lagonda International Holdings, a British super luxury performance brand. In other words, after Daimler, Volvo, Lutes and other international auto brands, the "buy buy buy" player again, and Li Shufu's "sports car dream" has come a step closer.

收购阿斯顿·马丁?吉利:不要问就是买!

Perhaps in some people's eyes, Geely's acquisition of the shares of this century old luxury supercar brand is a "snake swallows the elephant" behavior. But if you know Geely well, you can find that Geely seems to be very good at "bottom hunting" and has the effect of bringing the dead back to life.

Volvo is a typical example. After Geely acquired Volvo, the brand that has been losing money has successfully reversed its decline. At the same time, with the help of its car building technology and brand potential energy, Geely has been linked to Geely, making consumers more recognized by Geely, which can be said to achieve a win-win situation.

So why did Geely aim at Aston Martin this time?

收购阿斯顿·马丁?吉利:不要问就是买!

Transformation is an urgent matter

Of course, Aston Martin is a famous super luxury sports car brand with a history of 100 years. Its position is beyond doubt, but its global sales are not optimistic due to its scale and efficiency.

Specifically, we can see that Aston Martin has been in the mire of loss since 2018. Although the introduction of SUV models for the Chinese market has won the favor of many consumers in recent years, according to the report of Aston Martin, the loss is still serious.

According to the financial report, Aston Martin will lose 189 million pounds in 2021. As of June 30 this year, its debt will reach 2.3 billion pounds. It is worth mentioning that in the first half of 2022, the global sales of Aston Martin will be only 2676 vehicles. At the same time, the current loss level will hit a new high, reaching 285 million pounds.

Having said that, I'd like to share some interesting things with you. It is understood that Geely has made several requests for shares to Aston Martin, and none of them has been refused. However, after looking back and forth on Geely's acquisition in recent years, its attitude has changed dramatically. For example, it helped Volvo turn its losses into profits, maintain its position in the second tier luxury brand lineup, and finally achieved listing.

Secondly, after the acquisition of Lutes, there has been no "mess" phenomenon questioned by the outside world. At present, the brand has also started a comprehensive electric transformation. Specifically, this year, the world's first pure electric ELETRE model will be launched, and the pure electric four door sedan model code named Type133, the "new species of pure electric intelligence" of Type134, and the pure electric small sports car of Type135 will be launched successively to jointly layout the future electrification road of Lutes.

In addition, Smart brand jointly established with Mercedes Benz has also successfully launched smart Smart # 1, a pure electric new car. Its core three electric technologies are all provided by Geely, and are based on the vast SEA architecture newly developed by Geely. Perhaps, these are the envy of Aston Martin.

What's more, with the advent of the global electrification era, the transformation of major automobile enterprises has become increasingly fierce. On the other hand, Aston Martin does not have much technical reserves on the new energy road. At this time, it needs the support of a team with mature electrification technology.

收购阿斯顿·马丁?吉利:不要问就是买!

At present, Geely has had sufficient experience on the road of electrification, and the successful cases ahead have also provided more ideas for Aston Martin. Therefore, under the background of no money and no technology, Geely Holding has finally become the "savior" of Aston Martin.

For Geely, it may be a promotion

For Aston Martin, 7.6% of the shares is to solve the survival crisis from the root. In the long run, it is to consider strategic issues. For Geely to acquire Aston Martin, it may not rule out the possibility of "playing a big role" in the high-end sports market in the future, and the original intention of the current acquisition of Lutes is exactly the same.

It seems that Geely has always wanted to impact the high-end market. From the launch of the mid and high-end brand "LinkedIn", we can see the clues. However, since there was no background support from high-end brands, there was almost no domestic independent luxury brand. Therefore, the acquisition of Daimler, Volvo and other brands since then can show the long-term layout and development of Geely. Now, the investment in Aston Martin can greatly enhance the influence of Geely's entire brand, In the future, it will also have considerable confidence to impact the high-end sports market.

收购阿斯顿·马丁?吉利:不要问就是买!

Secondly, taking into account the stake in Aston Martin this time, Geely Group currently has more than 20 brands, including many luxury brands and people friendly brands. Of course, this is not just a "buy buy buy" thing. Behind the continuous expansion of the brand territory, we can actually see Geely's stable global layout, and Geely's auto finance territory has expanded a lot.

Although Geely is not as strong as BYD in terms of technical reserves, it can be said that Geely is "the best of the best" in terms of brand operation. As described in the article, Geely has the strength to bring the dead back to life. In recent years, all the automobile brands under Geely Group have developed well, and its profits have been leading. From the "buy buy buy" strategy, we can see that the overall perception of the Geely brand is quite good, A hundred flowers bloom is the ultimate goal.

收购阿斯顿·马丁?吉利:不要问就是买!

Of course, we will also believe that it is not impossible for Aston Martin to rebuild a new product relying on Geely's strength in electrification and intelligence. In fact, whether Geely shares in Aston Martin or in which company, it is undoubtedly a win-win situation for Geely. The cooperation between the two can first improve Geely's own brand sense and recognition, and secondly, the car enterprises that have been invested in can turn losses into profits, which is a matter of having the best of both worlds.

"No matter which one wins, China will win"

In the past, we can see that the domestic automobile market has been monopolized by joint venture brands for a long time, but in recent years, with the advent of the era of electrification, independent brands have reached a new height. According to the data of the Passenger Transport Federation, all the major auto enterprises have delivered satisfactory results in September, including 11531 new cars delivered by Ideal Auto in September, 10878 by Weilai, 8468 by Xiaopeng, and 10142 by Celes International Series.

As an ideal auto shareholder, Meituan CEO Wang Xing also expressed his views on the new domestic car making forces: in the next three years, he is optimistic about Ideal, Weilai and Huawei, and will break the leading position of Mercedes Benz, BMW and Audi in the domestic high-end car market. It can be seen that China's automobile market will have more and more influence in the world in the future. The leap forward progress is visible to the naked eye, and it has the ability to compete with international brands.

收购阿斯顿·马丁?吉利:不要问就是买!

In general, China's insight has far surpassed that of the European market in terms of both electrification and intelligence, and many independent brands have made their own marks. It can be said that Chinese cars have really ushered in an era of explosion, and the future must be the Chinese market and China's leading technology; Brother cylinder believes that Aston Martin will also move towards electrification, which is also the direction of the future development of automobiles.

收购阿斯顿·马丁?吉利:不要问就是买!

summary

Li Donghui, CEO of Geely Holding Group, said: "We are very happy to officially become an investor of Aston Martin. Geely Holding has rich experience in supporting the transformation of shareholding enterprises, and has profound technology accumulation in the fields of super electric and intelligent networking, which will help Aston Martin achieve greater success in the future".

It is undeniable that Geely's entry this time not only enhances the overall influence of the brand, but also develops in the field of pure electric supercar. This cooperation is undoubtedly a win-win situation. After Geely's successful participation in Aston Martin, who do you think will be the next target? Welcome to leave your comments.

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