Geely

Geely Auto Group is a leading automobile manufacturer based in Hangzhou, China, and was founded in 1997 as a subsidiary of Zhejiang Geely Holding Group. Geely Auto Group sells vehicles under the Geely Auto brand and holds a 50% stake in the LYNK & CO brand. The company employs more than 50,000 people and operates 12 plants. Geely vehicles are sold through a network of over 1000 dealerships in China and some 350 sales and service outlets in overseas markets. The company has been listed on the Hong Kong stock exchange since 2005. In 2018, Geely Auto Group sold a record high of 1,500,838 units, an increase of 20.3% from the previous year. Founding Geely in 1986 as a refrigerator maker with money borrowed from family, Li Shufu transformed the company into a success selling inexpensive products to Chinese consumers. After the purchase of a failing, state-run firm, Geely manufactured motorcycles in the mid-1990s. Small van production began in 1998, and a year later, it received state approval to manufacture automobiles. Car production began in 2002. A subsidiary of the group, Geely Auto, had its IPO on the Stock Exchange of Hong Kong in 2004. The company had a booth at the 2005 Frankfurt Motor Show, and 2006 showing at the Detroit auto show. Geely approached Ford in mid-2008 about a possible takeover of Volvo Cars. On October 28, 2009, it was named as the preferred buyer of Volvo by the American automaker. A deal was reached in late March and completed in early August 2010. In 2010, total sales of over 415,000 units gave the company a near 2% market share. Sales were lower than a reported 680,000 units per year production capacity. In December 2011, it was announced that Geely would begin selling Chinese-designed and -manufactured cars in the United Kingdom at the end of 2012, with the first model to go on sale being the Emgrand EC7. The company has also stated its intention to begin sales in Italy. In May 2017, Geely confirmed plans to purchase a 51% controlling stake in Lotus Cars from its owner, DRB-HICOM. Additionally, Geely plans to purchase a 49.9% stake in PROTON Holdings, to facilitate future export growth in right-hand drive markets. The deals were seen as an important step for the Chinese carmaker in their quest to make inroads into the lucrative ASEAN region. In July 2017 the company purchased Terrafugia, an American maker of flying cars. In November 2017, Geely announced the completion of the Terrafugia acquisition, including approval from all relevant regulators. In December 2017, Geely invested €3.25 billion into Swedish truck and construction company Volvo Group, a former parent company of Volvo Cars. The deal has made the company the biggest shareholder with 8.2% of the stake and 15.6% of voting rights. Furthering its expansion and reach, Geely purchased a 9.7% stake in Daimler-Benz, parent of Mercedes-Benz.