Geely still have an intention to invest in Nio, especially after the failed acquisition of Aston Martin, Geely needs new projects to improve its strategic layout, 21st Century Business Herald quoted people familiar with the matter as saying.
Although Nio is not a particularly ideal target from the perspective of company management, Geely is quite interested in Nio's high-end platform.
It is reported that there is no lack of reasons to invest in Nio, but the key lies in whether the maximum benefit can be obtained with a suitable consideration. This is the focus of repeated negotiations between many investors who negotiated with Nio Chairman Li Bin.
For Nio, reaching an intent is very important, but more importantly, the money must be received, no bag is left, and all agreements reached may have variables.
The above person said that the current situation is "changing rapidly", it is difficult to say whether Geely will return, but it is expected that Nio will make progress in March when it reports earnings.
It's almost certain that Geely Automobile, China's largest domestic car maker, will invest $ 300 million in Nio, Autocarweekly quoted sources as saying.
The source also revealed that Geely may integrate production capacity of Nio, which will be produced by Geely for Nio in the future.
Since the middle of last year, Li Shufu has repeatedly discussed with Li Bin about investment and shares, but the two sides have not reached a consensus.
On the one hand, Nio was not so eager to raise funds at the time, and he was holding chips. At the same time, he was talking about multiple investors. On the other hand, Li Shufu did not have enough motivation to invest in Nio. .
However, at the 2019 Shanghai Auto Show, Li Shufu visited the ideal car booth of the new carmaker and gave thumbs up to the ideal car founder Li Xiang, saying, "You are fast enough."
On the same day, Yang Xueliang, vice president of Geely, shared the photos of this scene on Weibo. Later, Li Xiang himself also reposted, and said that Li Shufu's visit and praise "enough for me to brag for a lifetime".
This was seen as a turning point in Li Shufu's embrace of the Internet, and after that, he began to approach Li Bin. However, during the Shanghai Auto Show, Li Shufu was originally scheduled to visit the Nio booth, but Li Bin did not think it was appropriate to meet at the booth, so the two formally contacted each other around the middle of the year.
From Geely's perspective, participating in investing in Nio makes sense. The person familiar with the matter told 21st Century Business Herald that Li Shufu had not been interested in the company before, but was always interested in its high-end platform.
Geely Holding Group already has several pure electric vehicle brands, including Geometry under Geely New Energy, Polestar jointly created by Volvo and Geely, and so on. However, the positioning of the Geometry brand is not as high-end as Nio, and the situation of Volvo and Polestar is more complicated.
Although Geely has long held Volvo, Volvo has been operating independently. Geely has only two board seats and has only recently begun to integrate.
According to Geely's announcement on February 10, the company is in preliminary discussions with Volvo Car's management to explore the possibility of a merger and reorganization of the two companies' businesses.
"Polestar's platform has also been redeveloped, and it is uncertain whether the market will accept it." The people familiar with the matter believe that, in comparison, Nio is not a perfect company, but its brand recognition is acceptable. "Nio's main problem is production and cost control, and the demand side is fine."
According to Geely's usual style, it is not uncommon to invest in one more Nio. Compared with the 200 million pounds invested in Aston Martin, the investment in Nio requires less capital, which does not pose pressure on Geely.