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Why does Geely still not use its engine for Volvo’s 8 years of acquisition?

In 2010, Geely formally acquired Volvo Cars. Until now, the two have been married for about eight years. For the marriage that once was dubbed the “snaking elephants”, both sides are real profitable players. Volvo has therefore While avoiding bankruptcy and benefitting from the Chinese market’s entry into profitability, Geely has been very helpful in terms of technology research and development because of Volvo’s joining. Of course, if you really want to talk about who is the biggest beneficiary, then there is no doubt that Volvo is, after all, this acquisition is a lifesaver for Volvo, but for Geely is only icing on the cake. precision machining service in China: Precision Manufacturing

However, Geely, the great benefactor of Volvo, despite having obtained a lot of R&D technical achievements from Volvo over the years, Volvo’s engine has not been carried on Geely’s models, which has also caused many consumers to feel puzzled. : I have saved your life. Is it harmless to use your engine for me? The actual reason Geely has not been able to share the engine with Volvo may be more disappointing to the Chinese people. It is not Volvo who does not give, but it does not dare to use Geely! precision machining service in China: Precision Manufacturing

The reason why I did not dare to use it, stand at the perspective of Geely Automobile, Volvo’s engine manufacturing costs are too high, because all the materials are imported relatively high-end raw materials, and its material cost is at least three times that of domestic engines. The Volvo engine will undoubtedly force the price of its own cars to be forced to increase. Perhaps some netizens will say, “If you improve, you will be able to raise yours. As long as the quality is good, we will certainly buy it.” Well, that year’s Guanzhi was the result of your “words”. Deluded, now are mixed to sell treasure, you say Geely will be stupid to repeat the same mistakes it? precision machining service in China: Precision Manufacturing

Standing on Volvo’s point of view, Volvo is the second echelon of luxury cars after the BBA. If Volvo and Geely share the engine, it will undoubtedly drastically reduce Volvo’s brand image. At that time, all consumers will Think Volvo is a fake luxury car, Land Rover because it was sold out of the Indian Tata Group sales and reputation on the loss, Volvo gave the engine Geely consequences can be imagined.

Geely Automobile and Volvo Cars are two hearts of Geely Holding Group. Both of them cannot be lost. Therefore, Geely cannot use Volvo engines, but Geely does not dare to carry Volvo engines. Let’s talk a little more and use the Volvo engine’s lead collar 01 and collar 02. Everyone shouts too expensive every day. Geely and Volvo’s hardships you know now. precision machining service in China: Precision Manufacturing

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