Geely was founded 1986 as a refrigerator parts company, before transitioning to motorcycles in 1994 and entering the automotive industry in 1997. ZGH as a holding company was founded in 2003. As of 2023[update], the company ranks 225 in the 2023 Fortune Global 500 list of the world's largest companies.[3] In 2023, the group produced a total of 2.79 million vehicles globally, including 980,000 plug-in electric vehicles.[2]
Geely is a phonetic transliteration of the company's native name 吉利 (pinyin: Jílì), which means "auspicious" or "propitious" in Chinese.[14]
Overview
Geely entered the automotive industry in 1997, but only officially received national production license in November 2001.[15] Following a restructuring of Geely, ZGH was established as a holding company largely owned by Li Shufu in March 2003. ZGH acquired the Swedish passenger car maker Volvo Cars from Ford Motor Company in 2010.[16] It completed the acquisition of British taxi maker Manganese Bronze Holdings in 2013 and restructured it into London Electric Vehicle Company.[17] In 2017, ZGH acquired a majority stake in British sports carmaker Lotus Cars in 2017.[18]
ZGH's business is divided into five business units: Geely Auto Group which includes the brands Geely Auto, Lynk & Co, and Proton Holdings; Volvo Car Group which includes the brands Volvo Cars and Polestar; Geely New Energy Commercial Vehicle Group which include the brands London Electric Vehicle Company and Yuancheng (Farizon); Geely Group (New Business) which includes the brands Caocao, Terrafugia, Qianjiang Motorcycle, Joma, and other new businesses; and Mitime Group (铭泰集团; Míngtài Jítuán) which includes ZGH educational institutions, motorsports business, and tourism business.
Geely was established in 1986 in Ningbo, Zhejiang by Li Shufu as a refrigerator parts manufacturer located in Taizhou, Zhejiang. To start the company, Li Shufu had to borrow funds from his family.[14][27] In 1994, Geely transitioned into the motorcycle industry by acquiring a state-run firm, and started producing China's first scooter.[28]
In 1997, Geely completed the construction of relevant factories and initial investment preparations to enter the automobile industry. This made Geely the first private automobile company in China, whereas other carmakers are state-owned enterprises such as Chery. Geely's first car, the Geely Haoqing, rolled off the assembly line in Linhai, Zhejiang on 8 August 1998. However, Geely did not obtain its national production license until 9 November 2001, which delayed mass production until 2002.[29] By 2002, the brand was ranked among the top ten in the Chinese automobile market.[29]
In 2002, Geely was restructured from being a family-operated entity to a joint-stock company managed by professional management. On 24 March 2003, Zhejiang Geely Holding Group Co., Ltd. (ZGH) was established with a registered capital of CN¥930 million.[30] In January 2004, Li Shufu bought controlling shares in Guorun Holdings Co., Ltd., a company listed on the Hong Kong Stock Exchange under the trading code 0175HK.[31] In March 2004, Guorun was renamed Geely Automobile Holdings Limited, a company under ZGH, retaining the same trading code.[32] This strategy was seen as Geely's "backdoor" entry into the Hong Kong stock market, providing a means to raise funds for the company.[33][34][32]
In 2006, Geely bought a 19.97 percent equity stake in British company Manganese Bronze Holdings, the manufacturer of London black cabs. Both companies started a £53 million joint venture to produce the black cabs in China, with Geely holding 52 percent and the British company 48 percent.[35][36] The company has since reduced costs by producing parts in China. In February 2013, ZGH fully acquired Manganese Bronze Holdings for £11.04 million, after the British company entered administration due to lack of funding.[37][38] ZGH established a new company under its British subsidiary called The London Taxi Corporation, later renamed London Electric Vehicle Company, to resume assembly of the London black cab in Coventry, UK.[39][40]
In 2009, Geely bought an Australian transmission company Drivetrain Systems International (DSI), at that time the second largest automatic transmission manufacturer for A$70 million. In 2014, Geely sold 90% of its stake in DSI to multiple other Chinese companies after the company suffered losses.[41]
Purchase of Volvo Cars (2008–2010)
Volvo Cars Chinese headquarter in Hangzhou, next to Geely's headquarter
Following continuing losses in that year, Ford Motor Company offered Volvo Cars for sale in December 2008.[42] On 28 October 2009, Ford confirmed that, after considering several offers, the preferred buyer of Volvo Cars was ZGH.[43][44] On 23 December 2009, Ford confirmed the terms of the sale to ZGH had been settled. A definitive agreement was signed on 28 March 2010 for US$1.8 billion. The European Commission and China's Ministry of Commerce approved the deal on 6 and 29 July 2010, respectively. The deal closed on 2 August 2010 with Geely paying $1.3 billion cash and a $200 million note.[45][46] At the time of the purchase, is the largest overseas acquisition by a Chinese automaker.[47]
This acquisition facilitated Volvo's recovery and brought significant technological and managerial advancements to Geely. Under Geely ownership, Volvo Cars has developed a new line of 3- and 4-cylinder diesel and petrol engines to replace larger engines. It has also developed a new vehicle platform called the Scalable Product Architecture (SPA). Sales reached 500,000 vehicles in 2015 for the first time in the brand's history, and continued to over 700,000 in 2023.[48][49] Both company jointly developed engines and platforms, notably the Compact Modular Architecture platform that is used by Volvo, Geely and Lynk & Co vehicles. Improving technical expertise and a sophisticated production management system led to a significant sales surge for Geely from 2010 onwards.[50]
Further acquisitions and brand establishments (2016–present)
In October 2016, Geely Auto released its new brand called Lynk & Co in Berlin, Germany, which is intended to bridge the gap between Geely and Volvo brands. The brand was launched with three production models, all based on the Compact Modular Architecture (CMA).[51] In August 2017, ZGH, Geely Automobile Holdings and Volvo Car Group signed an agreement at Geely Auto's Hangzhou Bay R&D Center to establish the Lynk & Co joint venture. Geely Auto controls 50% of Lynk & Co, Volvo Cars held 30%, and ZGH held the remaining 20%.[52]
In May 2017, ZGH purchased a 51% controlling-stake in Lotus Cars from its owner, DRB-HICOM, the largest shareholder of Malaysian carmaker Proton Holdings.[53][6] The remaining 49% were acquired by Etika Automotive, a holding company of Proton's major shareholder Syed Mokhtar Albukhary.[54] Proton had owned Lotus since 1996, and largely struggled to turn the fortunes of the sports car maker around. ZGH also purchased a 49.9% stake in Proton Holdings, which was agreed on 23 June 2017 and finalised on 29 September 2017.[55][56] The purchase was seen to facilitate future export growth in right-hand drive markets, and making inroads into the lucrative ASEAN region.[57][58] Proton confirmed that it would not downsize its workforce following its deal with Geely.[59]
In July 2017, the company purchased Terrafugia, an American maker of flying cars.[60] In November 2017, ZGH announced completion of the Terrafugia acquisition, including approval from all relevant regulators.[61]
In October 2017, Volvo Cars and ZGH announced that Polestar, a performance and tuning brand owned by Volvo Cars, would become a standalone brand focusing on electric cars.[62] Polestar introduced its first product, the Polestar 1 coupé on 17 October 2017. The car was produced at the Polestar Production Centre in Chengdu, China.[63] Following an initial public offering, Polestar shares began trading on the Nasdaq exchange under the symbol PSNY on 24 June 2022.[64][65]
In December 2017, ZGH invested €3.25billion into Swedish truck and construction company Volvo Group, a former parent company of Volvo Cars.[66] The deal made ZGH the biggest shareholder by number of shares with an 8.2% stake, and second by voting rights, with 15.6%.[66]
In September 2019, ZGH led a round of private funding for Volocopter that raised $55million for the company. Volocopter's other private investors also include Daimler AG which owns a stake in the company.[67]
In late July 2020, it was announced that the Xingma Group had agreed to transfer a 15.2% stake of its shares in the Ma'anshan-based heavy truck manufacturer Hualing Xingma to Geely New Energy Commercial Vehicle Group, a wholly owned subsidiary of ZGH. After the transaction, Geely New Energy Commercial Vehicle Group would become the de facto controlling shareholder of Hualing Xingma.[68]
In February 2020, Volvo Cars and Geely started formal discussions about a proposed merger of both businesses. In the existing arrangement, Volvo Cars has been allowed autonomy with its resources despite being fully owned by ZGH.[69] These merger talks were later halted, and 18% of Volvo Cars shares were listed on the Nasdaq Stockholm stock exchange in October 2021.[70]
InMarch 2021, ZGH launched the Zeekr brand for premium electric vehicles. Its first model, the Zeekr 001 was launched in April 2021, and deliveries began in October 2021.[71] In May 2024, Zeekr filed its initial public offering (IPO) on the New York Stock Exchange. Zeekr raised around US$441 million, making it the largest IPO of a Chinese company since 2021.[72]
In February 2024, Volvo Cars announced its plan to reduce its stake in Polestar by the third quarter of 2024 from currently 48.3% to around 18% by ceding it to ZGH.[73][74]
Taizhou Declaration and restructuring
In September 2024, Li Shufu, the founder of the Geely, released the "Taizhou Declaration", announcing that the company has entered a new stage of strategic transformation that Geely would promote the integration of internal resources, further clarify the positioning of each brand, straighten out equity relationships, reduce conflicts of interest and duplication of investment, and improve resource utilization efficiency. [75][76]
In October 2024, As the first step in this strategy, Geely announced to merge all the Geely Geometry dealership into Geely Galaxy dealership, further integrate its brand portfolio and sales channel.[77]
In November 2024, Geely Holding Group (Geely) announced to transfer its 11.3% stake in Zeekr Intelligent Technology (Zeekr) to Geely Automobile Holdings (Geely Auto). Geely Auto's shareholding ratio in Zeekr increased to 62.8%.[78][79]
Zeekr announced to purchase 20% stake of Lynk & Co from Geely Auto for 3.6 billion yuan and acquire Volvo Car's 30% stake in Lynk & Co for 5.4 billion yuan.[80] This made Zeekr hold 51% of Lynk & Co in total, while the remaining 49% of Lynk & Co shares continues to be held by Geely Auto.[78][79]
In 2018, Li Shufu through his investment company Tenaciou3 Prospect Investment Limited purchased a 9.7% stake in Daimler AG (now Mercedes-Benz Group), owner of the Mercedes-Benz and Smart brands.[83] As of 2024[update], Li Shufu is the second largest Mercedes-Benz AG shareholder after BAIC Group.[84]
In January 2020, ZGH and Daimler AG announced a 50-50 joint venture to develop and operate the Smart brand as a global electric vehicle brand. The venture, later named Smart Automobile Co., Ltd. is headquartered in Ningbo, Zhejiang. It has a registered capital of CN¥5.4 billion, with each company contributing CN¥2.7 billion.[85] The new all-electric Smart model from this joint venture was launched globally in 2022 as the Smart #1, previously showcased as the Concept #1 at the 2021 Munich Motor Show.[86] Smart electric vehicles from the partnership are based on the Sustainable Experience Architecture (SEA) electric vehicle platform developed by Geely.[87]
Renault partnerships (2021–present)
In August 2021, ZGH through its subsidiary Geely Auto formed a strategic partnership with Renault.[88] In January 2022, the two companies signed an agreement by which Renault's South Korean subsidiary, Renault Korea Motors, would produce vehicles based on Geely Compact Modular Architecture platform,[89][90] initially intended for the domestic market. As of January 2022[update], production was slated to start by 2024.[91] In May 2022, Renault said a Geely subsidiary was set to acquire a 34% stake of Renault Korea Motors through capital increase as part of their partnership, although the company would continue to be majority owned by Renault and a consolidated subsidiary of it.[92][93] In November 2022, Renault said it plans to combine its powertrain production and development operations (including internal combustion engines and hybrid systems) with Geely's into a joint venture holding company with both as co-owners.[94][95] The joint venture was officially established in late May 2024 as Horse Powertrain Limited, headquartered in London, United Kingdom.[96]
In January 2021, ZGH announced a deal to create an electric vehicle joint venture together with Baidu, a Chinese multinational technology company specializing in Internet-related services, products, and artificial intelligence (AI). Baidu would develop the electric car's software while Geely would manufacture the car.[97][98] The companies formed Jidu Auto in the same year, combining elements of both company names. Later, in August 2023, they launched the Ji Yue brand, with Geely owning 65% and Baidu 35%. Ji Yue is a subsidiary of Geely Group that was formed to circumvent restrictions on car manufacturing qualifications. Jidu Auto now focuses on technology solutions, including product design and AI development, for Ji Yue vehicles.[99][100][101]
Geely Auto is Geely Group's original and mainstream brand, primarily sold in China and select overseas markets. It has an electric vehicle product line, the Geely Galaxy for premium EV/PHEV.
Radar Auto (Chinese: 雷达汽车) is a battery electric pick-up truck brand owned by ZGH. The brand's first vehicle, the Radar RD6, was unveiled in 2022.[108] The brand was consolidated into Geely Auto in November 2024.[81]
Polestar is a publicly traded electric car brand established in Sweden under the Volvo Cars Group. Polestar was initially 50.5% owned by ZGH and 49.5% by Volvo Cars.[109]
Zeekr (Chinese: 极氪) is a premium battery electric vehicle brand of ZGH owned by Geely Automobile Holdings. The company is listed on the New York Stock Exchange since May 2024.[72]
The brand was founded in 2021 as an offshoot of Lynk & Co, as its first vehicles were meant to be Lynk & Co models.[110] However after a major shareholding restructuring in 2024, it holds 51% of Lynk & Co currently.
Lynk & Co (Chinese: 领克) was established in 2017 that uses technology developed jointly by Volvo Cars and Geely Auto.[111] Before 2024, It was owned 50% by Geely Auto, 30% by Volvo Cars, and 20% by ZGH. It currently 51% owned by Zeekr and 49% owned by Geely Auto after restructuring.
Proton is a national car brand of Malaysia, established in the 1980s at the behest of the government and later reverted to private ownership under DRB-HICOM.[112] Since 2017, the brand is owned 49.9% by ZGH and 50.1% by DRB-HICOM. Its first Geely-based vehicle, also the carmaker's first-ever SUV, the Proton X70 was introduced in Malaysia in December 2018. It is based on first-generation Geely Boyue.[113]
In July 2023, after the internal restructuring in Geely Group, the Proton brand was consolidated into the balance sheets of Geely Auto.[114]
The Maple brand name originated with Shanghai Maple Automobile, a Geely subsidiary established in 1999 and phased out in 2010.[115] The brand was temporarily revived in 2020 by launching its first EV, the Maple 30X. In 2022, Geely launched the joint venture between Lifan and Maple called Livan (Chinese: 睿蓝), and the previous Maple products were reconsolidated into Livan.
Lotus Cars is a British carmaker established in 1948 that produces sports and racing cars. It is owned 51% by ZGH since 2017, while the rest is owned by Etika Automotive.[116]
London Electric Vehicle Company (LEVC) is a brand owned by ZGH that produces and sells electric black cabs. It adopted its current name in 2017 to reflect its new mission of developing and producing electric commercial vehicles. It was previously known as The London Taxi Company, which has roots from Manganese Bronze Holdings, the original manufacturer of black cabs that Geely acquired in 2013. With a new factory in Ansty Park, near Coventry, it has begun production of a new generation of zero-emission-capable new taxi vehicle in late 2017.[117]
Jidu Auto (Chinese: 集度) is a joint venture between ZGH and Baidu that would be engaged in the production of electric vehicles in different segments starting in 2022.[118] Jidu Auto is owned 55% by Baidu and 45% by Geely.
The Ji Yue (Chinese: 极越) brand was established in August 2023 as the second collaboration between ZGH and Baidu. Ji Yue is 65% owned by ZGH and 35% by Baidu, making it a subsidiary of ZGH. Due to Chinese government policies, Baidu as the controlling company of Jidu, could not obtain the qualification to manufacture cars. Establishing Ji Yue allowed ZGH to be the controlling company, circumventing these restrictions. Jidu Auto has since become a technology solutions company focused on developing AI driving technology for Ji Yue and will no longer operate as an independent car brand.[101][119] With the launch of the new Ji Yue brand, the previous Jidu Robo-01 was renamed Ji Yue 01, and the Ji Yue brand inherited the logo originally created for Jidu Auto.[120]
In 2020, Mercedes-Benz and ZGH established the Smart brand as a global joint venture, targeting at producing battery electric vehicles in China and selling it globally.[121] In 2022, the joint venture launched its first model Smart #1.
Qianjiang Motorcycle is one of the largest manufacturers of two-wheeled vehicles in China. Since September 2016, the majority shareholding (29.8%) of the company has been controlled by the Geely Group. The vehicles are sold under four brands: QJiang, QJMotor, Benelli, Keeway Motors and KSR Moto.
Benelli is a subsidiary that produces motorcycles and scooters. Design, development and marketing activities are carried out at the Benelli QJ headquarters in Pesaro, Italy, with production occurring in Wenling, China, for sale globally.
Zhejiang Geely Ming Industrial Co., Ltd., common known as Geely Ming, or GM Motor, is a motorcycle manufacturer subsidiary founded in 1995 with registered office in Zhejiang province.
The vehicles are sold under two brands: Jiming and Geely Motorcycle.
Li Shufu, the founder and chairman of Geely, acquired a 9.69% stake of Mercedes-Benz Group in February 2018, making it the company's largest single shareholder.[122]
In 2017, Geely acquired an 8.2% stake of Volvo AB, which is also about 15% of votes.[129][130]
In January 2024, Geely announced to reduce its holdings in Volvo Group by 685 million USD. The stake has been lowered from 8.2% to 6.8%. Despite the reduction, Geely remains the second-largest shareholder in Volvo Group.[131]
In 2022, Geely invested over US$200 million to acquire a 34.02% stake in a joint venture in South Korea between Renault and the Samsung Group. The company plans to produce vehicles based on the Geely's Compact Modular Architecture platform, initially intended for the Korean domestic market.[132]
In 2015, Geely sold DSI to a Chinese investment company Shuanglin, which continue to manufacture the DSI designed products in Xiangtan, Jining and Ninghai.
Non-automotive businesses
Geely Technology Group
Caocao Chuxing (曹操出行) – Caocao Chuxing is a ride-hailing service that was developed by Hangzhou Youxing Technology Company and majority owned by ZGH. It is the first Chinese new energy-focused mobility service.
Terrafugia – Terrafugia was founded in 2006 targeting at roadable aircraft. The company was acquired in full by ZGH in 2017.
Zhejiang Qianjiang Motorcycle Group Co – Qianjiang Motorcycle (钱江摩托) was majority acquired by ZGH in 2016. The company is one of the largest producers of motorcycles in China and owns several renowned brands including Italy's Benelli. It is also known for its lithium battery technology.[135]
Geespace plans to create a network of low earth orbit satellites that will send precise positioning information to self-driving cars.[136]
Mitime Group
Mitime Group was established in 2004 and is affiliated to ZGH. It focuses on investment and operation management of higher education, sports, cultural tourism and other businesses. The group consists of three departments: Mitime Speedpark, Mitime Sports and Mitime Cultural Tourism.[137]
Mitime Speedpark – Investment and development of motor speedparks around the world. They have already constructed multiple race circuits in China and abroad and currently operate tracks in Ningbo, Chengdu, and North America.
Mitime Motorsports – Mitime constructs and operates race tracks for automobiles, motorcycles, and karts around the world. Mitime also organizes motorsport events such as China F4 Championship.
Mitime Tourism – Mitime facilitates tourism and manages hospitality services around its tracks.
In June 2022, Geely acquired a majority stake of Meizu, a Chinese consumer electronics manufacturer based in Zhuhai, Guangdong.[138]
Geely Talent Development Group
Beijing Geely University
Previously known as Mitime Education, a subsidiary of Mitime Group, the Geely Talent Development Group is the education branch of Geely to cultivate talents for the automotive industry. Geely has established 9 higher education institutions and more than 10,000 student graduate from Geely's schools each year.
Geely University – a private university located in Chengdu
In 2015, the manufacturer announced that it would invest $45.5 million over three years in the Icelandic company Carbon Recycling International to "collaborate on the deployment of renewable methanol fuel production technologies and vehicles running 100% on methanol in China, Iceland, and other countries".[156]
^"2016 nián nián dù bào gào" 2016年年度报告 [2016 Annual Report] (in Chinese (China)). Geely Holding. 28 April 2017. Retrieved 15 April 2018 – via Shanghai Clearing House website.
^McGregor, R. (April 2002) "Geely gears up china's first home-grown car" Financial Times
^"中国制造(2):探究吉利汽车集团的发展史_太平洋汽车网" [Made in China (2): Explore the development history of Geely Automobile Group]. www.pcauto.com.cn. 16 August 2012. Retrieved 21 May 2024.
^ ab"吉利汽车集团发展历程回顾" [Review of the development history of Geely Automobile Group]. chejiahao.m.autohome.com.cn. 14 April 2020. Retrieved 21 May 2024.
^"李书福VS贺学初 谁是吉利汽车借壳大赢家" [Li Shufu VS He Xuechu, who is the big winner of Geely Auto's backdoor listing?]. auto.sohu.com. 20 February 2004. Retrieved 22 May 2024.
^"回看吉利收购DSI公司5年后抛售：自动变速器成汽车"芯片"危机 - 经济观察网 － 专业财经新闻网站" [Looking back at Geely's acquisition of DSI and its sell-off five years later: automatic transmissions become a car “chip” crisis]. www.eeo.com.cn. 18 May 2018. Retrieved 22 May 2024.
^"华菱星马三度易主终如愿，但吉利要的不仅是"一辆重卡"" [After its third attempt at changing ownership, Hualing Xingma achieved its wish, but Geely wants more than just "a heavy trucker"]. finance.sina.cn (in Chinese). 24 July 2020. Retrieved 25 July 2020.
^"百度吉利合作造车"集度"之后添"极越" 二者有何不同？ | 投中网" [Baidu and Geely cooperate to build "Jidu" car and then add "Jiyue". What is the difference between the two? | Touzhong.com]. www.chinaventure.com.cn. Retrieved 25 August 2023.
^Geely model only. Since Geely's acquisition of Smart in 2022, the sales of smart Fortwo/Forfour are accounted for under the Mercedes-Benz Group, while smart #1 and smart #3 are included in the Geely.
^Consolidated into Geely's balance sheet since 2018
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