Geely Auto Group Restructures in Face of Challenges

Geely Automobile Group (China) yesterday (November 14) announced its third quarter 2024 business results and restructuring plan.

Specifically, the company's sales reached 534,000 vehicles in the last quarter, up 18.7% over the same period in 2023. As a result, revenue reached 60.38 billion yuan (about 8.36 billion USD), up more than 20% over the same period in 2023. Profit reached 2.46 billion yuan (about 340.5 million USD), up 92% over the same period last year. From January to October, the group sold 1.72 million vehicles, up 32% over the same period in 2023, and is on track to reach its target of 2 million vehicles this year.

Lynk & Co electric car (owned by Geely) at an exhibition in China in late 2023

Despite the positive business results, Geely also announced on November 14 that it would merge its Lynk & Co and Zeekr brands as part of efforts to streamline core businesses. A statement from Geely stressed that the merger aims to "accelerate technology synergies between the two brands, rationalize product portfolios and promote talent development, ultimately leading to greater global sales volume."

“This merger is an important measure for Geely to implement its long-term strategic plans. The coordination and integration of brands supports sustainable operations and creates greater synergy that benefits sales, services, revenue and product competitiveness, enabling our companies to provide greater value and opportunities to both global consumers and shareholders,” said Eric Li, Chairman of Geely.

The merger comes as the group faces fierce competition in the domestic electric vehicle market and higher taxes in Europe, according to Nikkei Asia . Like many other Chinese automakers, Geely is facing tougher tariffs after the EU last month approved additional duties of 17-35.3%, on top of import duties.

EU car tariffs of 10% on Chinese electric vehicles following an anti-subsidy investigation. For Geely, the total tariffs amount to 28.8%.

Regarding the electric car market, Reuters on November 13 quoted a report from market research firm Rho Motion saying that sales in October of the global electric vehicle market, including pure electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), increased by 35% compared to the same month last year.

Source: https://thanhnien.vn/tap-doan-o-to-geely-tai-cau-truc-truoc-thach-thuc-185241114200738759.htm