Now that Volvo is set on a five-year revival plan, with new platforms and engines being developed and new models like the XC90 being rolled out, Li Shufu is focusing on the other automaker he owns.
The Chinese billionaire has decided to kill off the Emgrand, Gleagle and Englon brands that were introduced in 2009 and, from now on, offer all models under the single Geely brand.
“Geely and other local carmakers have to make a breakthrough and move up the food chain by introducing more sophisticated models”, said Guotai Junan Securities Co. analyst Harry Chen, who believes that killing the three brands was a clever move: “By consolidating the brands, the company can save costs on marketing and enhance efficiency”, he told Bloomberg.
Last month, Geely’s sales dove by 22 percent compared to November 2013; it’s a slide shares by other local brands who lose share to foreign brands such as VW and GM.
An Conghui, the CEO of Zhejiang Geely, wants to up the carmaker’s profile considerably: “Chinese can not only make cars but are also capable of making good cars. We are utilizing the very best designers the automotive word offers to create a new global design language.”
Indeed, former Volvo design director Peter Horbury, who moved to Geely after the Chinese automaker acquired the Swedish automaker, has penned his first-ever model for Geely, the GC9 full-size sedan.
Although the company hasn’t announced its pricing, the GC9 will go head-to-head with other models in the same segment, like the Toyota Camry and Mazda 6, which cost around 150,000 yuan (US$24,000). To promote its new model, GC9s were handed over by Lo himself to the members of the Chinese national swimming team, while the Chinese Diplomatic Personnel Service Bureau has ordered 50 GC9 and 20 Volvo S80L saloons to ferry foreign diplomats.
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