BRIEF: Geely enters consolidation mode after years of expansion
Zhejiang Geely Holding Group is shifting its focus from strategic expansion to strategic consolidation, founder Li Shufu said at an event in the city of Taizhou on Friday, according to a Caixin report. He added Geely will close and repurpose some facilities and won’t blindly expand, in efforts to stabilize its operations. Li made the remarks as growth in China’s auto market stalls after more than two decades of rapid expansion.
Founded in 1986, Geely has been among the most aggressive of China’s automakers, growing through acquisitions and organically. It made global headlines with its $1.8 billion purchase of Volvo from Ford in 2010, in what was the largest acquisition of a western carmaker by a Chinese firm at that time. More recently it has moved aggressively into electric vehicles, and earlier this year listed its Zeekr (ZK.US) EV brand on the New York Stock Exchange.
By Doug Young
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