Zhejiang Geely Holding Group Co. opened its biggest dealership last Friday in Shanghai, also its first dealership nationwide that sells vehicles under the Emgrand, Gleagle and Shanghai Englon banners. While the Geely brand will completely withdraw from its dealer system in 2012, First Financial Daily reported Monday.
"We will not promote this type of dealerships in most areas of the country, but we will in key areas which includes Nanjing, Tianjin, etc.. We will promote such dealerships in China gradually, said Liu Jinliang, Vice President of Geely Group," in an interview with the First Financial Daily.
The number of Emgrand dealerships will increase to 200 by the end of this year and stays around 250 by 2012. Geely Group will spend the next two years in helping its dealers improve profitability and services but not quantity. The Group will eliminate the dealers who do not meet its requirements, Liu said.
Geely Group has a relatively lower growth rate in the first- and second-tier cities at present, and a high growth rate of over 30% in the third- and fourth-tier cities.
With the launch of the Emgrand and Gleagle brand, the market position of the Geely brand, which is 60% positioned for urban users and 40% positioned for users in the third- and fourth-tier cities, will be changed thoroughly.
When asked when the Geely brand will be withdrawn from the market, Liu said the Freedom Ship and Vision brand will be gradually shifted to the Gleagle brand, the King Kong and Golden Eagle brand will be shifted to the Shanghai Englon brand, and the Geely brand will fade away completely in 2012.
sources: gasgoo and CCTLast week at Geely’s newest flagship dealership in Shanghai, Geely announced that the Geely brand will slip away from the mainstream by 2012, and will allow its sub brands to pick up the slack. Geely’s sub brands include Gleagle, Emgrand, and Shanghai Englon which will be strenthened over the coming months. Gleage is Geely’s global brand and is a shortening of ‘Global Eagle’, Emgrand is Geely’s luxury brand and Shanghai Englon will be used for the LTI Taxi project and other economy vehicles.
The vice president of Geely Group, Mr. Liu Jinliang was quoted as saying “We will not push this type of dealership elsewhere in the country, except for special areas of interested such as Nanjing and Tianjin”. The new flagship dealership covers over 1.2 acres of land and sells all of Geely’s brands under one roof.
Geely is finding slow growth in first and second tier cities, but third and fourth tier cities are seeing double digit sales growth for Hangzhou based Geely, with the fastest growth in Western China, and also North China.
Geely is going to ramp up the number of Emgrand dealerships to 200 by the end of 2010, and will increase to 250 by 2012, Geely is focusing on assisting dealerships achieve a greater profitability and increase service level, but will not increase the no of Geely dealerships, and dealerships that don’t meet the demand will be cut from the line up.
Once the Geely Freedom Ship and Yuan Jing models have been moved over to the Gleagle brand and the King Kong and Golden Eagle models moved over to the Shanghai Englon, then Geely will be retired from the market.
oh great, its the "GO-NOW" name fiasco all over againmartin_krpan said:Geely brand to die in 2012
sources: gasgoo and CCT
Just like Chery, Geely resorted to the creation of sub-brands to sell specific products in the Chinese market. Several products were separated between four brands, but instead to help boost the company's image and sales, was undermining the identity of the manufacturer and only Emgrand succeeded at the expense of others.
Thus, Geely should assume its sub products to strengthen your own image, especially now with the expansion of Volvo in the domestic market. Besides the Emgrand, the company also offers the Gleagle and Englon besides Geely itself. Probably there will be a reduction in the number of models offered.