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Geely sets up joint ventures in inland China

good, they should focus internally before external:thumb:


SHANGHAI, China -- Geely Automobile said Tuesday it has set up two joint ventures with a sister company to build and sell economy cars in inland provinces where the labor costs are low and sales are just beginning to take off.
In a notice to the Hong Kong Stock Exchange, the Chinese automaker said the ventures were planned to tap continued strong growth in demand for "fuel-efficient and easy-to-maintain economy sedans."
Geely Automobile, based in Zhejiang province near Shanghai, said it plans to spend $75 million on each of the ventures, to be built in central China's Hunan province and in Gansu, in the northwest.
The Hunan venture will be 53.19 percent owned by Zhejiang Haoqing, a Geely subsidiary, and 46.81 percent owned by Centurion Industries Ltd., a holding company registered in the British Virgin Islands that is wholly owned by Geely.
The Gansu venture, to be based near the provincial capital of Lanzhou, will be 53.19 percent held by Zhejiang Geely Merrie and 46.81 percent by Centurion, it said. All companies involved are controlled by Geely's chairman and founder Li Shufu.
Geely has vowed to overcome technical hurdles and the negative image of Chinese manufacturing to begin selling a low-priced family sedan in the United States by 2008. While trying to expand overseas, it also is focusing on the fastest growing segment of the domestic market -- affordable economy cars.
The company, whose name denotes good luck in Chinese, was founded in 1986 and is one of China's few privately held auto companies.
 

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This article leaves out a third party's share of this joint venture. Previous reports have indicated that the Gansu Provincial government will hold 42.5% of this venture.

These ventures will be a good opportunity for Geely to spread its sales network where it wasn't welcome before. Provincialism in China has systematically kept out companies like Geely and Brilliance from the west and southwest.

Geely has earned a good guy image due to its heavy investment in children's education. Now in Lanzhou, the 10th most polluted city in the world (according to Xinhuanet), Geely will have a chance to do its part as a model "green car" company. Honda and Toyota are already making impressive strides in their adopted home town locations by the control of waste water/liquids and by the use of water-based coatings.

At the start it looks like the Freedom Cruiser will be the first product turned out at the new Lanzhou factory.
 

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China’s Geely to buy parent’s car plants

HONG KONG: Geely Automobile Holdings Ltd plans to almost double its slice of four car plants worth nearly US$500mil and set up a new one in central China, as the ambitious company expands while streamlining a convoluted structure.

Executive director Lawrence Ang said yesterday the privately run firm intended to increase its stake to 90% in the quartet of plants, which carried a combined net asset value of HK$3.65bil (US$467mil) as of the end of 2006.

Its unlisted parent of the same name would own the remainder. Geely would issue new shares to its parent corporation to fund the purchase, Ang said.

Buying most of the factories would allow the aggressively expanding Chinese firm, which is in discussions to set up assembly plants across the Americas, Europe and Africa, to consolidate profits at those plants into its bottom line.

Geely, which with local rivals Chery Automobile Co and Dongfeng is expanding in the world's second largest vehicle market while hoping to eventually tap markets abroad, now owns 46.8% of the four factories.

The company, which sells some of the country's cheapest cars under the Geely and Maple brands, plans to double capacity next year to some 600,000 vehicles annually. It hopes to be able to crank out a million cars a year by 2010.

Geely expects to sell 240,000 cars this year, more than a third more than last year's 175,635 units.

In addition to the stake expansions, Geely will own 90% of a plant now being built in central China. – Reuters
 

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Geely sputters over stock deal

Geely sputters over stock deal
By Clare Cheung 2007-7-17


SHARES of Geely Automobile Holdings Ltd, the listed unit of China's largest privately owned car maker, fell yesterday after it agreed to sell stock to its controlling shareholder at a discount to buy stakes in car making ventures.

The stock dropped 6.9 percent to HK$1.36 (17 US cents) in Hong Kong after earlier plunging as much as 11 percent. The shares resumed trading yesterday after being halted last Wednesday before an announcement.

Geely will sell 1.29 billion new shares at HK$1.25 apiece to Li Shufu to buy stakes in five ventures, it said on Friday. That's a 14-percent discount to the closing price last Wednesday.

"The existing shareholders may be hurt due to dilution effect on earnings, but the deal is favorable to them because the purchase price is quite cheap," Alex Tam, a Hong Kong-based analyst at CSC Securities Ltd, told Bloomberg News. "I think it's getting a good balance here."

Geely, based in Hong Kong, makes Free Cruiser compact cars and other models through four ventures, all of which are indirectly controlled by Li. The fifth is due to begin production by the end of the year, Executive Director Lawrence Ang said on Friday.

The auto maker will pay HK$1.61 billion to Li to raise its stakes in the ventures to 91 percent from 46.8 percent.

Shanghai Daily
 

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Geely Automotive business news

SHANGHAI - August 3, 2007: Geely Automobile Holdings Ltd, China's largest privately-owned carmaker, plans to cut its spare parts suppliers in China by over 50% in the near future. Meanwhile the company also set up a management team to take charge of the company's spare parts purchase procedures, spare parts inventory as well as logistic support.

"Geely has unveiled plans to centralize its purchase operations while it intends to buyout most stakes from its four affiliated plants in China," said Geely's vice president Wang Ziliang.

The management team will first work out a set of new polices regarding the purchase of spare parts and begins to utilize a computer-based information system in spare parts management, Wang said.

Secondly, Geely will streamline a sophisticated auto parts supplying structure by reducing the number of its auto parts suppliers. Geely will reduce its spare parts suppliers to 300 -500 by the end of 2007. The company now has 1000 auto parts suppliers.

"The primary goal behind this move is to improve our product quality," Wang explained. "Our second goal is to reduce costs."

Geely hopes to cast off its old image as a cheap, low-end auto producer. It hopes to follow practices of international auto giants while trying to compete with them globally, Wang said.

Earlier last month, Geely unveiled plans to buyout its four affiliated plants in China. The net asset value of affiliated plants stood at US$467 million as of the end of 2006.

Geely sold 204,000 cars last year and plans to triple it output capacity next year to some 600,000 vehicles annually. The company hopes to be able to turn out a million cars annually by 2010.
 

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Geely posts 34.6% sales rise in July

Xinhua)
Updated: 2007-08-12 09:30


Geely Automobile, a major private carmaker in China, sold 11,236 cars in July, a growth of 34.6 percent over the same month of last year, company sources said on Saturday.

However, the company's sales in the first seven months of this year went down 4.7 percent to 95,623 cars, which accounted for only 40 percent of its annual sales target of 240,000.
The sources said the Hong Kong-listed company received a record of nearly 30,000 orders in June, but the delivery had to be postponed partly because of the limited production capacity of its workshops in Ningbo, East China's Zhejiang Province.

The company has to speed up production in the rest months as the demand for some models is expected to increase, company sources said, adding the Ningbo production facilities will be expanded.
 

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Geely to add five new cars a year

Geely to add five new cars a year
(China Daily/Agencies)
Updated: 2008-01-16 09:29


Geely Holdings Group Co, the Chinese maker of $5,000 compacts, will add five new models a year, including sedans, until 2010 because of faster-growing demand for larger cars in the world's second largest auto market.

The carmaker will also raise its annual production capacity in China to 1.7 million vehicles by 2015, Vice-President Zhao Fuquan said at the Detroit motor show yesterday. China's largest privately controlled carmaker can currently make 300,000 cars a year, according to its website.

Geely plans to add larger models and to boost sales overseas as Chinese drivers, enriched by stock market gains, shun compacts in favor of more expensive cars. The company's Hong Kong-listed unit missed its vehicle sales target in 2007 for at least the second year in a row.
The carmaker is planning to open plants in Europe and southern Africa, Zhao said at the North American International Automobile Show. He declined to provide more details. Earlier this week, the company said it will set up an assembly venture in Mexico to serve markets in the Americas, including the US.

Geely's new models this year will include a five-door hatchback KingKong compact and a 1.8-liter China Dragon sports car based on its Beauty Leopard model. It will also add a 1-liter compact named the Panda in the local market.

The company's Geely Automobile Holdings Ltd unit sold 186,000 vehicles last year, an increase of more than 20 percent, Geely Chairman Li Shufu said earlier this week. The unit cut its sales target to 190,000 in September. It aims to boost vehicle sales 18 percent this year to 220,000, Li added.

Geely expects to export 1.3 million vehicles a year by 2015 compared with about 30,000 last year. The company now operates factories in Russia, Ukraine and Indonesia, assembling vehicles from component kits.

The automaker and unidentified partners will make an initial investment of $500 million in the Mexican plant, which will eventually have a capacity of 300,000 vehicles a year.


http://news.xinhuanet.com/english/2008-01/16/content_7431773.htm


This is how Geely plans to hit their target sale this year. Last year, Geely and Chery did not really release any new models. I think that is the reason why they both miss their sale target.
 

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Geely Auto to unveil new safety technology

Geely Auto to unveil new safety technology
(Agencies)
Updated: 2008-01-08 16:02


Geely Holding Group (Geely Auto), the parent of Hong Kong-listed Geely Automobile Holdings Ltd, said it plans to announce new safety technology at the North American International Auto Show in Detroit later this month.

China's largest privately-owned automaker said in a statement that the technology fills a current gap in safety technology by helping vehicles avoid high-speed accidents.

"While current auto safety technologies focus on passive protection for vehicles driven at normal speeds, prevention and control of unexpected accidents for automobiles running at high speeds is still a difficult problem for the industry." said Geely Auto.

It added that the China-patented technology has been tested by the Ministry of Public Security, which is in charge of the country's car safety testing program and regulates road traffic.

"It's a revolution in terms of auto safety." Geely Auto said.

Geely Auto, which also exhibited at the 2006 Detroit show with the intent of expanding into the US market, announced last month an export target of 50, 000 cars in 2008, compared with a target of 40,000 units in 2007.

http://www.chinadaily.com.cn/bizchina/2008-01/08/content_6379229.htm


Anyone knows what kind of technology they talk about ? Is it really " new " or is it just new to Geely ?
 

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Geely aims to impress with technology

January 17, 2008

Geely, China's largest independent automaker, isn't ready to sell cars in the US yet, but has a major presence at the 2008 Detroit auto show to demonstrate that its technology is innovative and original.

The company showed Chinese-market sedans, hatchbacks and coupés, as well as a version of the LTI TX4 London taxi, which Geely builds under license in China.

But most of these cars are unlikely to be sold in the US or Europe; only the FC small sedan, 100 percent developed in-house, could be adapted for exports to developed markets.

Instead Geely is focusing on its technical capabilities at Detroit
The company has developed an electronic tyre blowout safety system called BBMS
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Chairman Li Shufu spoke at length about an electronic tyre blowout safety system the company has developed called BBMS, describing it rather grandly as "our gift to mankind".

He said: "People do not believe that Chinese brands are doing innovative work. We want to show that we are."

Vice-president Frank Zhao said the company was building new assembly plants in China to give it an annual capacity of 1.7-million units by 2015 in nine facilities.

He said the company would pursue "a very aggressive overseas manufacturing plan", based on six planned assembly plants around the world, including one in Europe and one in Mexico, which was already under construction.

He said Geely would launch 15 new models in the next five years, with engines including its own, EU-compliant, two-litre diesels
The key is to switch from 'made in China' to 'developed in China'
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The pace was rapid, he said: "Chinese brands have achieved in the past five years what it took Japanese and Korean brands 20 years to do."

The key was to switch from "made in China" to "developed in China", he added.

Asked when Geely would start operations in the US, Li Shufu’s response was enigmatic: That's a tough question; we will do it when you welcome us here."


http://www.motoring.co.za/index.php?fSectionId=751&fSetId=381&fArticleId=4209106
 

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needed: a quiet quest for quality

Quote:
Chairman Li Shufu spoke at length about an electronic tyre blowout safety system the company has developed called BBMS, describing it rather grandly as "our gift to mankind"..........

Asked when Geely would start operations in the US, Li Shufu’s response was enigmatic: That's a tough question; we will do it when you welcome us here."
Grandstanding about gimmicks like this will not make Geely welcome in the U.S..
But what will make it welcome is a determined and steady effort to improve on the current very poor quality of the product.
 

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Geely Automobile Sales Rose 15% in Jan 08
Thursday, February 21, 2008; Posted: 05:33 AM


Geely Automobile Holdings Ltd. (SEHK: 0175), a leading Chinese homegrown carmaker, has reported that its four 46.8% controlled subsidiaries sold 22,753 cars in January 2008, up 15% from a year ago and 16.5% over December 2007.

The sales were a record monthly figure of the Zhejiang-based company and were more than the anticipation of the company.

The four subsidiaries, namely Zhejiang Geely Automobile Co., Ltd., Shanghai Maple Guorun Automobile Co., Ltd., Zhejiang Kingkong Automobile Co., Ltd. and Zhejiang Ruhoo Automobile Co., Ltd., sold 16,806 Free Cruisers, Kingkongs and Visions on the sedan market. The 2008 versions of three sedan models contributed most to the listed company's overall sales growth.

The sales of Kingkong and Vision hit over 5,200 cars and 3,300 cars in the first month of this year respectively, representing 38% of the company's total sales volume.

The four subsidiaries plan to sell 230,000 cars this year with a yearly 27% increase.

http://www.tradingmarkets.com/.site/news/Stock News/1119572/
 

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Geely Megathon Continues - from China Car Times.

The Geely megathon that has been running on China Car Times seems to be showing zero effects of slowing down, news has leaked onto the internet that Geely is planning a whole plethora of cars, 18 new cars in total that will be broken down as follows:

* FIVE, thats 5 new platforms! These can be broken down into - super economy cars, economy cars, compact sedans, high performance cars and an SUV

* Geely SUV - this is the secret SUV that Geely have us all guessing about - pictures have floated onto the internet before, but we (and others) believe them to be doctored Nissan X-Trails. The biggest thing we’ve heard about this SUV so far, is that it will be Honda CRV sized, and will also be using a hybrid drive train! A hybrid SUV would be a first from Chinese makers, who have so far made hybrid MPVs and sedans. A hybrid SUV would be perfect for those who like the size and sense of security that an SUV brings, but prefer the fuel economy of a regular sized sedan.

* Beijing Auto Show - Geely are set to show off the King Kong hatchback, as well as 12 other new cars. Excited? You betcha! We want to know what Geely have been cooking up over the past year, apparently we will also see the second generation Geely Coupe. Hopefully it will be this one, and not this one.
 
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