Why didn't Geely acquire Volvo's technology after the acquisition?

[LeBrielle]

Geely has acquired 100% of Volvo's shares, which means Geely has the right to use all of Volvo's engine technologies; however, Volvo and Geely operate independently in terms of brand management and technology development. The reasons why Geely did not obtain the technology are as follows: 1. Brand positioning: There is a concern about lowering Volvo's premium status and level, as Geely is positioned as a mid-to-low-end brand in the domestic market, while Volvo is positioned as a mid-to-high-end brand. To maintain their respective brand positions, direct technology sharing was avoided. 2. Integration costs: Integration costs would increase. Currently, Geely has already established its own system, which is completely different from Volvo's. If Geely were to adopt Volvo's older platforms for car production, it would require significant investment in vehicle development and production line modifications, along with a lengthy time commitment. This would, in turn, cause Geely to lose its cost advantage. Therefore, Geely did not hastily adopt Volvo's platforms.