China’s Geely Auto to slash excess capacity amid overhaul to boost carmaker’s global edge
Company chairman eyes plant mergers and a formal succession road map as the firm rejects price wars to focus on international growth in rivalry with BYD
Geely Auto, which is locked in a fierce battle for dominance against BYD in China’s crowded automotive market, has pledged to purge excess capacity through an asset restructuring while ramping up its go-global drive with an eye on greater international competitiveness.
“Geely Auto is determined in its resolve to achieve sound corporate development by concentrating our superior resources on a vertically integrated automotive group,” he said in a video clip posted online. “By doing so, we will transform Geely into a strong and large carmaker with advantages in systemic development, corporate governance and global competitiveness.”
While Geely’s billionaire founder did not reveal specifics, such as the number of plants or the scale of excess capacity that could be disposed of amid the asset revamp, the move signals a strategic pivot for the Hangzhou-based manufacturer.
Geely operates a diverse stable of brands, including Zeekr, Lynk & Co, and Galaxy.