There are a lot of possible benefits for all parties concerned

Geely’s acquisition of Lotus sent some shockwaves to the auto industry for good reason. The Chinese automaker has been pushing aggressively for Western expansion in recent years, having acquired Volvo back in 2010. It’s done incredible work on that front and the results have been impressive. Volvo, dormant for so long, has become a luxury brand to be reckoned with once again and there doesn’t appear to be any signs of the Swedish company slowing down anytime soon. What Geely has done for Volvo is one of the big reasons why the Chinese automaker’s recent purchase of a majority stake in Lotus is being treated with a lot of optimism, and rightfully so.

Now I’m not about to go into overdrive on the hyperbole, but I do think that this transaction will yield a lot of positive results for both Geely and Lotus. Volvo could even benefit from it, and while we’re at it, let’s not forget about Geely’s new start-up electric car company, Lynk and Co. There’s plenty of room for growth for all these companies now that they’ll effectively under one umbrella. The objective now is to look at the possible benefits that each of these companies stand to gain.

Continue after the jump to read the full story.

What Geely stands to gain

Lotus Finally Gets A New Owner!
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Chinese auto brands don’t garner as much respect as they probably wish from the Western auto world

Another auto brand under the Geely umbrella - and an important one in Lotus at that - adds yet another layer of legitimacy to the Chinese automaker. Let’s face it. Chinese auto brands don’t garner as much respect as they probably wish from the Western auto world. Part of it is self-inflicted from the years of building copycat models. But if there’s anything that Geely has proven in recent years, it’s that it has the right people at the helm to get rid of that perception. It’s already done a tremendous job on Volvo for bringing the Swedish automaker back from mediocrity to actually flourishing in today’s auto climate. That’s a huge accomplishment considering where Volvo was before Geely purchased it back in 2010. Words like “boring, stagnant, and ho-hum” we’re being thrown around. Now, Volvo’s as competitive as it’s ever been and it’s all because Geely has pushed the right buttons in building the company back up. That’s legitimacy that no amount of currency can buy and the purchase of Lotus shows that Geely isn’t slowing down on making a huge mark on the business.

What Lotus stands to gain

Lotus is in far more stable position now compared to where it was under its previous owners.

How about a new lease in life? Does a company actually get that? In any case, an argument can be made that Lotus is in the same position Volvo was back in 2010. Some might even take it a step further by saying that Lotus is in worse state than anything Volvo had to deal with during its darkest times. The state of despair Lotus was in cannot be understated. But the proverbial lifeline came when Geely stepped in to take up the cudgels of bringing the British automaker back to relevancy the same way it did to Volvo. Obviously, the approach is going to be different because Volvo and Lotus serve very different markets. But the fact that Lotus is even in this position is a victory in itself. We may not end up seeing all those Lotus concepts from 2012 that were supposed to bring the company back to the spotlight, but at least we know that Lotus is in far more stable position now compared to where it was under its previous owners.

What Volvo stands to gain

A sports car that combines Lotus’ engineering with Polestar’s performance capabilities, and Volvo’s world-class safety reputation?

The potential here is enormous, especially if Volvo continues to go down that route of bringing out more Polestar models in the future. With Lotus essentially turning into a sister company of sorts, it’s not inconceivable for Volvo to tap into the chassis technology that Lotus is famous for. Even Volvo’s vehicle dynamics engineer, Roger Walgreen, told Drive that Volvo won’t have any problem using Lotus’ engineering expertise, saying that the technology is “applicable all over the board.” Not that it’s been confirmed or anything, but it does make it easier for Volvo and Lotus to have some kind of professional working relationship. Can you imagine then Lotus contributing to the performance characteristics of Volvo’s performance models? Maybe there’s even a scenario where Lotus and Polestar work on a Volvo sports car together? Considering how rapidly evolving the auto industry is today, how implausible is a Volvo sports car? I don’t think it’s unlikely anymore and if somebody from Geely pushes to make it happen, we might end up seeing one. A sports car that combines Lotus’ engineering with Polestar’s performance capabilities, and Volvo’s world-class safety reputation? Sounds very interesting, to say the least.

What Lynk and Co. stands to gain

Link and Co’s involvement in this whole picture is the most interesting one to project because Lynk and Co itself is just starting its own journey in the auto industry. I can say though that Volvo has played various roles in helping Lynk and Co, most prominently with the plans to use the Swedish automaker’s CMA platform for its models, including the 01 crossover. With Lotus in the mix, it would be very advantageous for Geely and Lynk & Co to also tap into the British automaker’s expertise in order to provide future buyers with some of the best-riding electric cars in the market.

Plenty of opportunities are now on the table

A sports car that combines Lotus’ engineering with Polestar’s performance capabilities, and Volvo’s world-class safety reputation?

It’s also not out of reach for any of these companies to partner in some form or fashion to develop a specific model for a specific brand. The truth is that there are plenty of possibilities in store for Geely now that it has Lotus in the fold. How it proceeds from here will determine whether the Lotus brand is brought back to life, but judging from past history, I’m optimistic that the Chinese automaker can accomplish that task. It already did it for Volvo. Who’s to say it can’t do it for Lotus this time around?

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