The chief of Geely, Li Shufu, has observed the electric vehicle industry expanding with electric vehicle manufacturers like Tesla Inc and Nio Inc recording significant profit margins. This trend attracted the chairperson’s interest in the industry, making him desire to make notable changes with his company. Geely runs both Volvo Cars and a fraction of Daimler AG and intends to secure a portion of the high-performing electric car market. Li Auto has been on the race to outshine Geely through last year with its new models. The result of this competition is the two companies leveling up against each other. Geely has observed this rivalry and decided to invest in its operations to become the leading manufacturer of electric cars in China and the entire world.
An executive of Geely announced that their chairperson is ready for contractual manufacturing and partnerships that can peddle the company towards mega success. Using original equipment manufacturing (OEM) to bring on board production operations for some models has become a trend in this industry. Geely plans on an aggressive and agile contractual manufacturing approach to ensure that it capitalizes on the market share. The company has already penned down four contracts. One of the deals is with Taiwan’s Foxconn to develop electric vehicles. The source that gave this update wanted to be kept unanimous for security reasons and to avoid victimization in the company’s operations. This venture will also be tackling electric vehicles’ mass production to support the operations of Faraday Future.
Geely also entered an agreement with the internet provider called Baidu Inc, which will facilitate the production of smart electric vehicles for the giant private company. This deal will witness the introduction of the first model into the market next year. Another deal that will characterize Geely’s expansion is with Tencent Holdings Ltd to develop the smart car operation and automated driving technology.
The company executives refused to divulge any details concerning these contracts saying that the media already has enough information that it intended to remain confidential. Geely is planning on unveiling various electric car models on the market, especially after deploying the electric vehicle platform that cost the company $3.8 billion. The two-year drop in the company’s sales made Li rethink his stand on the approach to partnerships from prominent technology companies and other industry giants. However, the company executives expressed concerns over Faraday Future’s choice to partner with because the company is known for making ambitious promises.
This post was originally published on Downey Magazine