Latest news with #GeelyHoldingGroup
Yahoo
3 days ago
- Automotive
- Yahoo
Geely won't build plants in U.S., Europe amid excess global capacity, founder Li Shufu says
Geely Holding Group will not build assembly plants in Europe or the United States as the auto industry's globalization push stalls and the world faces a surplus of factories, founder and chairman Li Shufu said. The company instead should further enhance coordination with Volvo and other partners, including Renault and several other automotive companies, in the U.S. and Europe, Li said during a recent internal meeting at the company. He didn't elaborate on what he meant by coordination, according to a video of the meeting released by Geely on May 28. Sign up for the weekly Automotive News China newsletter, including commentary by journalist Yang Jian and highlights from top manufacturers and supplier news from China and Asia. Geely and other automakers face increased competition in China from legacy automakers and startups such as Xiaomi. BYD has launched a bruising price war that sparked a recent sales surge but is also undercutting profits across the industry as other automakers are forced to match the discounts. Li's comments come amid a trade war between the U.S. and China that has effectively locked Chinese automakers out of the American market because of high tariffs on electric vehicles. BYD, Chery and other Chinese automakers are also making a push to expand sales overseas with foreign plants or through exports, adding more competition in key markets including Brazil. In Europe, Chinese automakers also face steep tariffs on EVs, prompting them to localize output. Globalization has come to an end after expanding for more than 40 years, and it is time for Geely to adjust its global strategy, Li said. 'We should avoid constructing production facilities, which involves purchasing land, building factories, buying equipment and hiring employees, as this is not an optimal approach given the global surplus in auto production capacity,' he said. RELATED ARTICLE: Geely, in leadership shakeup, appoints Zeekr head as new group CEO; Q1 profits jump In South Korea and other markets, Geely 'should do what it can to cooperate with Renault and other Western automakers on [utilizing their] production capacity,' Li added. Geely is still seeking what he called 'breakthroughs' in some 'key' markets, Li told staffers at the internal meeting. 'For example, in Southeast Asia, particularly in Malaysia, we must accelerate localization efforts, including the localization of components and talent,' he said. 'This is an urgent priority that requires immediate action,' he added. Geely Holding Group, based in Hangzhou, the capital of east China's Zhejiang province, builds and markets gasoline and electrified cars and light trucks under Geely and other brands. The private Chinese conglomerate owns Swedish carmaker Volvo Car Corp. and British taxi manufacturer London EV Co., previously known as London Taxi Co. It also holds shares in German luxury carmaker Mercedes-Benz and British sports car brands Aston Martin and Lotus, as well as Malaysian car brand Proton. Geely Holding Group assembles and distributes battery-electric vehicles for Smart and Lotus brands in China. Outside China, the Chinese group produces vehicles under the Geely brand in Belarus. It also produces and markets vehicles under Proton in Malaysia. In October 2022, Geely Holding Group acquired a 32 percent stake in Renault Group's Korean subsidiary to produce hybrid vehicles and internal combustion engine models for the local market. The two sides created a joint venture in London in May 2024 to develop hybrid and combustion powertrain systems including engines, transmissions, hybrid systems and batteries for their own brands and other global automakers including Nissan Motor Co. and Mitsubishi Motors Corp. On Feb. 18, Geely Holding Group signed a preliminary deal with Renault allowing it to use the French automaker's plants and distribution network in Brazil to build and sell vehicles locally. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
23-04-2025
- Automotive
- The Sun
Huge British car firm warns of ‘more cost cuts' days after axing hundreds of jobs over ‘volatile market'
A HUGE British car firm has warned it is being forced to make more cuts, after scrapping hundreds of jobs. Lotus has blamed the "volatility" caused by Donald Trump 's trade tariffs for the cuts. 3 3 3 The luxury sports car company announced the cuts despite the fact it has almost doubled sales over the last year. The motorcar firm recorded 12,134 sales in the 2024 financial year, a 74% increase on the 6970 sales made the previous year. However, Lotus made just £21.7m in gross profit, a significant decrease on the £76.3 million it made the previous year. Chief financial officer Daxue Wang blamed the decrease in profits on the impact of worldwide tariffs and "global trade uncertainties." He added that Lotus, which will become one company when the sports car division merges with the Chinese electric car division, will be forced to undergo "strategic cost optimisation to improve profitability." 'As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,' Mr Wang said. The beginning of these cost-cutting measures was announced last month, when the manufacturer announced that it would be cutting 270 jobs. The brand promised it was "committed to the UK" despite the cuts, but this has done little to ease fears. A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market. "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars. Nissan Rogue Discontinued: America's Top-Selling SUV Faces Tariff Pressure "The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. "It will look at greater resource sharing and collaboration in technology, engineering, and operations." Days after the job cuts were announced, Lotus' current owner Geely International, triggered a 2023 agreement to force Lotus Technology Inc to buy back 51 per cent of Lotus Advanced Technologies. Currently Geely owns 51 per cent of Lotus, with the other 49 percent owned by Malaysian group Etika Automotive. Qingfeng Feng, Senior Vice President of Geely Holding Group and CEO of Group Lotus, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand. "It will strengthen brand equity and enhance our operational flexibility and internal synergies. "We are confident that the transaction will create substantial long-term value for our shareholders." Donald Trump 's introduction of 25 percent tariffs on car imports to the US has heaped huge pressure on car brands. The UK sends one sixth of all of the cars it builds each year to the US. These include luxe models from car brands such as Aston Martin, Rolls Royce and Land Rover. Sales to the US amount to about 100,000 a year, with a worth of around £8 billion. Trump has claimed that the import tax for cars, which came into play on April 2, would lead to "tremendous growth" for the industry. However, experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries
Morocco World
21-04-2025
- Automotive
- Morocco World
Zeekr Enters Moroccan Market with Premium Electric Vehicles
Doha – Chinese electric vehicle manufacturer Zeekr has officially launched in Morocco through a strategic partnership with Tractafric Motors Morocco. Founded in 2021 by Geely Holding Group, Zeekr brings two premium electric models to the Moroccan market. The partnership aims to meet growing demand for high-end sustainable mobility solutions in Morocco. 'The launch of Zeekr in Morocco represents a major strategic advancement for Tractafric Motors,' said Younes El Aouad, General Manager of Tractafric Motors Morocco. Marouane Tarafa, CEO of Optorg Group, stated: 'This launch is another building block in our century-long presence in Africa, offering automotive solutions designed for African markets.' Two models are now available in Morocco. The first is the Zeekr 001, a premium shooting brake starting at MAD 665,000 ($66,500) with range up to 620 km on a single charge. It features fast charging capability from 10% to 80% in just 30 minutes with 200 kW DC charging. Available in three versions with power outputs ranging from 272 to 544 horsepower. The 544 hp all-wheel drive version accelerates from 0 to 100 km/h in 3.8 seconds. The second is the Zeekr X, a compact electric SUV starting at MAD 465,000 ($46,500) with range up to 440 km. It offers 150 kW DC fast charging from 10% to 80% in 30 minutes and is available in two versions with 272 or 428 horsepower. The 'Flagship' all-wheel drive model reaches 100 km/h in 3.8 seconds. A third model, the Zeekr 7X family SUV, will expand the lineup in the third quarter of 2025. It will offer up to 615 km range and feature ultra-fast charging that recovers 80% of battery in 13 minutes. The 'Performance' version will deliver 639 horsepower with 0-100 km/h acceleration in 3.8 seconds. Zeekr vehicles are designed at the company's design center in Gothenburg, Sweden, under the direction of Stefan Sielaff. The models are built on the SEA (Sustainable Experience Architecture) platform, engineered for safety, optimized range and intelligent connectivity. Tarafa Marouane aims to sell about 100 units this year with the goal of establishing Zeekr among Morocco's reference premium brands. Read also: BYD Brings Latest Electric City Car Seagull to Moroccan Market
