Latest news with #GeelyAuto
Yahoo
09-06-2025
- Automotive
- Yahoo
Geely chairman highlights overcapacity issues in automotive sector
The global automotive industry is grappling with "serious overcapacity", according to Geely chairman and founder Li Shufu. Speaking at an auto forum in Chongqing, Li announced that the company would not pursue the construction of new manufacturing plants or expand existing facilities. This decision reported by Reuters, reflects the intense competition and price wars within the Chinese auto market, which have driven manufacturers to seek opportunities overseas. Geely Holding, which encompasses brands such as Geely Auto, Zeekr, and Volvo, is adapting to the industry's challenges by leveraging international partnerships rather than expanding its production footprint. In a strategic move, Geely plans to utilise Renault's production facilities in Brazil and acquire a minority stake in the French automaker's Latin American operations. However, this collaboration has faced regulatory delays, as reported by the news agency in April. Despite the regulatory hurdles, Geely's cooperation with Renault in Brazil has been described as successful by the company. In another international venture, Geely Auto has partnered with Jameel Motors to introduce its new energy vehicles (NEVs) to the Polish market. This marks Geely Auto's first foray into Poland, tapping into the country's burgeoning electric vehicle sector, which saw a 41% increase in battery electric vehicle sales in February 2025. Also, Geely Holding Group's sales figures underscore the growing demand for NEVs. The company reported a significant 31% year-on-year increase in global vehicle sales, reaching 946,627 units in the first quarter of 2025. NEV sales, in particular, soared by 83%, accounting for nearly half of Geely's total vehicle sales during this period. "Geely chairman highlights overcapacity issues in automotive sector" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
South China Morning Post
09-06-2025
- Automotive
- South China Morning Post
China's Geely to stop building new car plants amid severe global overcapacity: Li Shufu
Geely Auto , the mainland's second-largest carmaker, will not build new plants amid excess capacity worldwide, a move that is likely to ripple across the sector as most Chinese companies are finding it difficult to make profits. Chairman Li Shufu told the Chongqing Auto Show over the weekend that the company would avoid building excess capacity and instead focus on improving its technological capabilities to become a key player in the future of mobility. 'The global automotive industry is mired in severe overcapacity woes, [so] we have decided to stop building new car plants,' he said in a video clip posted online. His comments came as carmakers were mired in a brutal price war on the mainland. Leading players such as BYD , Geely and start-up Leapmotor slashed prices of 70 models by as much as 20 per cent in the last week of May to retain market share, according to the 21st Century Business Herald newspaper. Geely Auto chairman Li Shufu told the Chongqing Auto Show over the weekend that the company will stop building new car plants. Photo: Handout Chinese carmakers' discounts more than doubled to a record 16.8 per cent in April from 8.3 per cent in 2024, according to a JPMorgan Chase report in May.
The Star
08-06-2025
- Automotive
- The Star
Geely sounds alarm on auto overcapacity
FILE PHOTO: Geely Auto logo is seen in this illustration taken January 16, 2024. REUTERS/Dado Ruvic/Illustration/File Photo SHANGHAI: The global automotive industry was facing 'serious overcapacity' and that the Chinese automaker had decided not to build new manufacturing plants or expand production in existing facilities, according to Geely chairman and founder Li Shufu. Li made the comments last Saturday at an auto forum in the central city of Chongqing, according to his company. Geely Holding owns multiple automotive brands including Geely Auto, Zeekr and Volvo. His comments come as the Chinese auto industry, the world's largest, has been locked in a brutal price war that is forcing many players to look to markets abroad and has prompted Chinese regulators to call for a halt. Chinese automakers that have been building plants abroad include BYD, Chery Auto and Great Wall Motor. Geely plans to use Renault's Brazil facilities and take a minority stake in its local business, per a February announcement. — Reuters
Yahoo
02-06-2025
- Automotive
- Yahoo
Geely's $2.2bn take-private bid for Zeekr faces investor pushback
Geely has been met with resistance from investors regarding its $2.2bn take-private bid for its electric car unit, Zeekr, reported Reuters. Early investors, including Contemporary Amperex Technology (CATL), Intel Capital, and Boyu Capital, have expressed concerns that the offer does not reflect Zeekr's fair value. The investors, who participated in Zeekr's initial fundraising, have voiced their dissatisfaction through two letters to the company's board and a special committee. They argue that the privatisation price is too low, with the first letter stating that it values Zeekr at only $6.5bn, significantly less than its peers such as Li Auto and Xpeng. Geely, known for purchasing international brands like Volvo and Proton, announced its intention to fully integrate Zeekr into Geely Auto on 7 May. This move came as a surprise, especially since Zeekr went public in the US just a year prior. The bid has also raised speculation about the future of other Geely units poised for Hong Kong listings, such as CaoCao, and the possibility of delisting US-listed units like Polestar. Geely Auto, which holds approximately two-thirds of Zeekr, and Zeekr itself fall under the Geely Holding umbrella, chaired by Geely founder Eric Li. A Geely spokesperson stated that discussions with Zeekr's special committee are in progress, while Zeekr, CATL, Intel Capital, Boyu Capital, and Cathay Fortune have not commented. Bilibili, another investor, declined to comment. The offer, as per Geely Auto's filing, is non-binding, with a binding agreement contingent on the execution of definitive agreements and their terms and conditions. Eric Li's strategy has shifted from aggressive acquisitions to streamlining operations and reducing costs amidst intense competition in China's auto market. Zeekr has emerged as an asset for Geely, with sales reaching 41,403 units in the first quarter, a 25% increase year-on-year, surpassing BYD's premium brand Denza. The investors have urged that any privatisation deal should gain the approval of the majority of "independent minority" shareholders. The five investors were part of Zeekr's first external fundraising round in 2021, valuing the company at $9bn, and held a combined 6% stake. A later round in 2023 valued Zeekr at $13bn, but its public valuation dropped to $5.5bn. Y2 Capital, another investor, has also reportedly sent a letter echoing these concerns. Geely's offer of $25.66 per American Depository Share of Zeekr is a 24% premium over the average share price before the announcement, below the average US take-private deal premium of 40% since 2023. Despite this, Zeekr shares are trading above the offer price, closing last at $26.59. Analysts suggest that Geely Auto may have enough votes to proceed with the privatisation without additional shareholder approvals due to its 65.7% stake in Zeekr. "Geely's $2.2bn take-private bid for Zeekr faces investor pushback – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Recorder
26-05-2025
- Automotive
- Business Recorder
China, HK stocks weaken
HONG KONG: China and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. At the close, the Shanghai Composite index weakened 0.1% to 3,346.84. The blue-chip CSI300 index dropped 0.6%. In Hong Kong, the benchmark Hang Seng Index was down 1.4% at 23,282.33. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7%. Car-makers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9%, while rival Geely Auto tumbled 9.5%. The CSI All Share Automobiles Index lost 2.9%, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9%. 'The price cuts could put some short-term pressure on earnings,' analysts at Sinolink Securities said in a note. 'It got investors concerned about profitability, and the sector is likely to enter a correction.' Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2%. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. 'We estimate every 1% of RMB increase versus the USD could boost Chinese equities by 3%,' Goldman Sachs' China equity strategist Kinger Lau wrote in a note. Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added.
