automotive

Automotive Industry Overcapacity, Geely Racks Its Brains To Survive

Geely Chairman and Founder Li Shufu has warned that the global auto industry is currently facing a significant overcapacity problem. In a statement during an automotive forum in Chongqing, he stressed that Geely will not build new factories or expand existing production capacity.  

Geely Holding owns several major brands such as Geely Auto, Zeekr, and Volvo. Li's remarks come amid intense price competition in China's auto market, which has also seen the country's automakers increasingly seek opportunities in international markets. 

 The situation has also drawn the attention of Chinese authorities, who have called for an end to price competition to avoid a negative impact on the industry as a whole. Several major Chinese automakers such as BYD, Chery, and Great Wall Motor have taken steps to build factories overseas to accommodate excess production. 

However, Geely has chosen a different approach by planning to tap Renault's production facilities in Brazil. In addition, Geely will also take a minority stake in Renault's operations in the South American country, a move announced in February. However, according to a Reuters report in April, approval for the partnership was said to have been delayed by Chinese authorities. Geely, in its response, stressed that its partnership with Renault in Brazil has so far been smooth and successful. 

Tag: Automotive Industry Geely