Geely will not build new plants. And that’s why

The chairman and founder of Geely Eric Lee (Lee Shuf) stated that the world automotive industry was faced with a “serious excess of capacities,” writes Reuters. Geely herself, which owns Volvo, Zeekr, Lynk & Co and a number of other brands, in this regard, decided not to build new factories. It will also not increase production volumes on existing sites.

Eric Lee’s statement was made against the backdrop of the next stage of the price war between the Chinese automakers, which was already called to terminate the PRC authorities. Rivalry at home forces auto giants to focus on Western markets more and more. For example, they are actively invested abroad by BYD, CERY and Great Wall Motor.

Geely is going to establish the production of electrified cars at Renault capacities in Brazil for the production of electric cars. In February, she stated that she was going to redeem the assets of the French concern in the country, becoming their minority holder.

Chinese media: the era of superprofits in the car market of Russia ended in China authorities warned the industry about too low prices for cars, the release of popular Suzuki stopped due to China

However, the project stalled: China authorities at an indefinite time blocked the purchase due to conflict with the United States.

The pressure from the Chinese brands and weak demand force the once unconditional leaders of the car market to reduce expenses. So, Volkswagen, in the framework of business restructuring, convinced 20 thousand German employees to leave of their own free will. By 2030, the staff will reduce 35 thousand as a whole – that is, almost a third.

Hybrid forms: benzoelectric novelties