Key facts
- Geely Auto plans to reduce excess production capacity.
- The company will restructure assets to improve global competitiveness.
- Chairman Li Shufu announced the strategy at the Chongqing Auto Show.
- Redundant production facilities will be assessed for closure, suspension, merger, or sale.
- Geely aims for better corporate governance and systemic development.
Geely Auto is set to reduce its excess production capacity through an asset restructuring initiative, aiming to bolster its global competitiveness amidst intense market competition in China. Chairman Li Shufu announced the company's commitment to consolidating resources and enhancing corporate governance.
During the Chongqing Auto Show, Li Shufu indicated that Geely Auto would evaluate its production capacity across all units to identify and address oversupply. Decisions regarding the fate of redundant facilities—whether to close, suspend, merge, or sell them—will be made as part of this strategic overhaul. The company seeks to concentrate its superior resources into a vertically integrated automotive group.
While specific details on the number of plants or the scale of capacity reduction were not disclosed, this move represents a significant strategic shift for the Hangzhou-based manufacturer. Geely operates a portfolio of brands including Zeekr, Lynk & Co, and Galaxy, and produces both traditional internal combustion engine vehicles and electric vehicles.