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Archive for the ‘Geely’ Category

PostHeaderIcon Geely To Collaborate With CATL To Manufacture Batteries For EVs

The auto industry is moving towards an EV-olution, and all automakers have taken part in the rat race to gain a lead. While smaller automakers are outsourcing the batteries, bigger players are getting into production themselves. Geely’s subsidiary, Zhejiang Jirun Automobile, will collaborate along with Contemporary Amperex Technology Co Ltd. (CATL) in a joint venture to set up a battery-manufacturing plant.

PostHeaderIcon Geely Partners With Chinese Aerospace Company to Build Supersonic Trains

In an effort to create an all-new transportation system, Chinese automaker Zhejiang Geely Holding Group partnered with China Aerospace Science and Industry Corp (CASIC). This way, the companies will double their efforts to develop supersonic trains.

If Elon Musk and Hyperloop come to your mind now, you are right. Geely and state-owned CASIC are looking to develop and build supersonic trains that can travel up to speeds of 620 mph. It is a system that, at least in writing, reminds us a lot of the Elon Musk proposed Hyperloop.

PostHeaderIcon Geely Wants Lotus To Start Playing With The Big Boys

Geely’s plans for Lotus includes bringing the once-proud British sports car brand back to relevancy. But a new report from Automotive News Europe reveals that the Chinese auto giant now has bigger plans for its new acquisition, specifically increasing its stake in Lotus with a fresh $1.9 billion investment. If Geely’s plans come to fruition, it could up its stake in Lotus from 51 percent to a more significant ownership percentage. Doing so would cut into the shares of Malaysia’s Erika Automotive, which currently owns 49 percent of Lotus.

PostHeaderIcon Geely Had Eyes For BMW Before Buying Daimler Stock

Geely’s purchase of $9 billion in Daimler shares made it the biggest shareholder in the German automaker. But before Geely chairman and founder Li Shufu rose to become the largest single shareholder at Mercedes-Benz, he apparently had his eyes on the German automaker’s biggest rival, BMW. A report from German news outlet Spiegel revealed that Geely was actually in talks with Bimmer executives. According to the report, Geely promised BMW better access to the Chinese market in exchange for co-operative sharing of electric car technology between the two brands.


Geely Looking To Acquire Daimler AG Stock - image 753288
“The recent report once again puts into focus Geely’s aggressive expansion plans”

As we all know, the BMW-Geely partnership never amounted to anything because Bimmer ultimately decided to strike a deal with another Chinese automaker, Great Wall. Talks between Geely and BMW apparently go back to 2016, so it happened before the Chinese company had any meaningful talks with Daimler. It’s unclear if Daimler is going to feel a little slighted with being Geely’s “fallback” option, but the two sides seem to be happy to have a deal in place. In fact, Reuters reported late last month that a contingent of Geely executives already went to Germany to meet with their counterparts in Daimler.

The recent report once again puts into focus Geely’s aggressive expansion plans. In this decade alone, the largest privately owned Chinese automaker has purchased Volvo, Lotus, and the London Taxi Cab Company. It also started its own electric car brand, Lynk & Co., and bought startup flying car manufacturer Terrafugia. In addition to its failed overtures with BMW, the company also had talks with Fiat Chrysler Automobiles last year over the possibility of a buyout.


Lotus Finally Gets A New Owner! - image 717974
“Chinese automaker has purchased Volvo, Lotus, and the London Taxi Cab Company”

All of this is part of Li’s plan to become a major player in the auto industry. “No current car industry player is likely to win this battle against the invaders from outside without friends,” he said. “To achieve and assert technological leadership, one has to adopt a new way of thinking in terms of sharing and combining strength. My investment in Daimler reflects this vision.”

That much is clear now, but what if Geely and BMW struck a deal first? Would that have affected the company’s purchase of Daimler stock? We’ll probably never know the answer to that question, but what Geely has achieved in the last few years is still impressive. Here’s to hoping that all of its investments work in some form or capacity.

References


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Read more Geely news.


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Read more BMW news.

PostHeaderIcon Geely to Hold Off on Acquiring More Daimler Stock… for Now

It seems that the only company that can stop Geely from conquering the auto industry is Geely itself. The Chinese car giant recently scored another blockbuster acquisition when it finalized a deal to buy 9.69 percent of Daimler, making it the largest outside shareholder of the German auto conglomerate, edging out the Kuwait Investment Authority and the Renault-Nissan-Mitsubishi Alliance, which had 6.8 and 3.1 percent, respectively. Now, it looks like Geely’s ready to slow its roll on making more acquisitions, at least for the time being.


Fastest Selling Car in History is.... the Lynk & Co 01 - image 749089
“The deal with Daimler is important for a number of reasons, one of which is that Geely gets a huge share of a company whose business is trending up as we speak.”

While there’s no clear-cut explanation about why Geely’s holding off on buying more stock from Daimler, the reason for doing so could be tied into what the automaker plans to do with the shares it just acquired. The deal with Daimler is important for a number of reasons, one of which is that Geely gets a huge share of a company whose business is trending up as we speak. Daimler is doing so well these days that it has managed to unseat BMW AG in the top spot among luxury car brands in the world. Geely now gets a big share of that business, so it’s reasonable to think that it’s going to try to ride that wave of momentum for the time being.

Another reason could be the newfound opportunity that comes with leveraging Daimler’s vast technological resources and using it for its own purpose. The engineering and technological knowledge Daimler possesses, especially when it comes to electrification and autonomous driving tech, is a big draw for Geely as it tries to establish Lynk & Co., its own startup electric car company.

Geely’s acquisition also points to a bigger trend that’s happening in the industry. An analyst of the industry spoke about it in a conversation with Autocar. “With all the disruption in the market and luxury brands across the world working on their future investments in areas like EVs, autonomous vehicles and mobility-as-a-service, the established brands will be regularly courted by new entrants to establish brand loyalty in new products (such as EVs) and ensure cost-effective use of new technologies,” the analyst.

With the spending spree over, now’s as good a time as any for Geely to sit back, look at the things it has just purchased, and see where they fit into the company’s own plans for the future.

References


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Read more Daimler news.


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Read more Geely news.

PostHeaderIcon Geely Spends $9.2B to Purchase a 10-Percent Stake in Daimler

Geely has reportedly purchased a near 10-percent stake in Daimler, a move that set the Chinese company back some €7.5 billion or $9.22 billion at exchange rates as of February 23, 2018. The move was officially confirmed by Daimler as was undertaken by the purchase of stock over the past few weeks. The move comes down after Daimler turned down Geely’s offer to Purchase a 5-percent stake for $4.5 billion.


Lotus Finally Gets A New Owner! - image 717974
“Geely has been buying up companies left and right, with the most recent being Lotus back in October of 2017.”

The Daimler-Geely saga may appear to have come to an end, but this is probably just the beginning. Geely has been buying up companies left and right, with the most recent being Lotus back in October of 2017. Geely has worked wonders for Volvo and is expected to do the same for Lotus, but that isn’t where Geely’s interest lies when it comes to Daimler. Geely’s main motive is interested in Daimler’s battery technology, something that could help Geely in a major way with its Lynk & Co brand – a company will offer a myriad of electric and hybrid vehicles.

What really happens from here is unknown, but Geely only holds a small chunk of Daimler. And, it’s not the only Chinese firm with interest as Daimler has strong ties to both BAIC and BYD. Whether or not Geely will search to purchase a bigger stake remains to be see, but as of the time of this writing, institutional investors own 70.7 percent of Daimler, and it’s hard to imagine anyone with sense letting their stake go – Daimler has been on the up and up, recently pushing BMW AG down a peg as it reclaimed the No. 1 spot among luxury car makers.

References


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Read more Daimler news.


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PostHeaderIcon Geely Still Wants a Sizable Chunk of Daimler

Geely’s plan to expand faster than my waistline is coming to fruition. As if owning Volvo, establishing Lynk & Co., and acquiring a majority stake in Lotus aren’t enough, the Chinese automaker is now expected to purchase at least 6.8 percent of Mercedes-Benz’s parent company, Daimler. The transaction will make Geely the company’s largest shareholder, edging out the Kuwait Investment Authority and the Renault-Nissan-Mitsubishi Alliance, which controls 6.8 percent and 3.1 percent of Daimler, respectively.


2014 Geely Emgrand 7 - image 573486
“It’s unclear where its shares will come from, but the likely scenario is that its shares will come from institutional investors”

If Geely’s long-term plan involves dominating the auto industry, it’s doing a piss poor job at being low-key about it. Acquiring stake in Daimler is arguably the automaker’s biggest transaction outside of buying Volvo back in 2010. The reported shares are also larger than what was initially suggested by Chinese state media, which reported that Geely was working on purchasing just three to five percent of Daimler.

Apparently, Geely’s a lot more aggressive than we thought. It says a lot about a company’s aggressiveness to push forward with an acquisition after getting shut down previously by Daimler when it made overtures to buy shares of the German automaker at a reduced rate. Daimler did invite its counterpart to buy shares in the open market, which Geely has reportedly done.

Now that it has another automaker to add to its portfolio, there’s no telling what Geely is capable of doing — or buying — next. It already has Volvo, Lynk & Co., Lotus, The London Taxi Company, and American flying car startup Terrafugia in the fold. Now it’s the biggest shareholder in Daimler. It’s unclear where its shares will come from, but the likely scenario is that its shares will come from institutional investors, which currently hold a 70.7 percent stake in the company with private investors holding the remaining 19.4 percent stake.

Speaking with Autocar, an anonymous analyst suggested that the acquisition is part of a plan by both Geely and Daimler to leverage their new relationship in developing shared technologies for the future. “With all the disruption in the market and luxury brands across the world working on their future investments in areas like EVs, autonomous vehicles and mobility as a service, the established brands will be regularly courted by new entrants to establish brand loyalty in new products (such as electric vehicles) and ensure cost-effective use of new technologies,” the analyst said.

References


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Read more Daimler news.


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Read more Geely news.

PostHeaderIcon Geely Buys $3.3B Stake In Volvo’s Truck Line

Zhejiang Geely, the Chinese automaker best known in the West for its ownership of Volvo and its recent acquisition of Lotus, has just purchased an 8.2-percent stake in AB Volvo for an estimated $3.3 billion U.S. dollars. Though it appears a small stake, the 8.2-percent makes Geely the largest shareholder of AB Volvo and the second largest by voting rights, just behind the investment firm Industrivarden. This puts Geely in a power position over both Volvo cars and AB Volvo’s commercial truck and bus business. A Geely spokesperson said the company has no intention of reuniting the two Volvo divisions, which had separated in 1999. Geely purchased the stage from the investment firm Cevian Capital.

“Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Geely Holding Chairman Li Shufu told Reuters in a statement in late December 2017.

Geely’s purchase also means it now controls AB Volvo’s 45-percent stake in Dongfeng Commercial Vehicles, a large player in China’s commercial truck market. Interestingly, Geely is also working to buy a three to five percent stake in Daimler, the parent company of Mercedes-Benz and Smart, worth an estimated $4,7 billion. Not only does Mercedes have its massive consumer-based vehicles, but also its commercial arm that builds a wide range of light- to heavy-duty vehicles. That would put Geely in an authoritative position in the commercial trucking industry.

References


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Read more Geely news.


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PostHeaderIcon Geely Looking To Acquire Daimler AG Stock

Geely is plucking assets left and right. First, it was Volvo. Then it turned its attention to Lynk & Co, the London Taxi Company, and, most recently, Lotus. Now it looks like the Chinese auto conglomerate is looking to dip its hands into one of the world’s most prestigious auto brands. A report from China Central Television revealed that Geely is looking to acquire a small take in Daimler AG, the parent company of a certain German automaker that calls itself Mercedes-Benz.


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“Geely is looking to acquire a three percent to five percent stake in the German auto conglomerate”

According to the CCTV report, Geely is looking to acquire a three percent to five percent stake in the German auto conglomerate. Such a deal would cost Geely almost €4 billion, which converts to around $4.73 billion. If the deal pushes through, Geely would become the third largest shareholder of Daimler, trailing only the company’s institutional shareholders (70.7%) and the Kuwait Investment Authority (6.8%). Private shareholders account for 19.4% of the company’s stock while the Renault-Nissan-Mitsubishi Alliance holds 3.1% percent of stocks.

Geely’s attempt to buy into Daimler AG isn’t a breaking development in the auto industry. Just last month, Reuters reported that the Chinese conglomerate offered to buy a five-percent stake in its German counterpart based on the issue of new shares at a discount. Daimler rejected the offer but did tell Geely that it was welcome to buy shares, provided that the latter do so in the open market with no discounts attached.

“The two sides are likely still in negotiations on a price, but the important thing here is Geely’s incredible aggressiveness in expanding its footprint in the auto industry”

The two sides are likely still in negotiations on a price, but the important thing here is Geely’s incredible aggressiveness in expanding its footprint in the auto industry. It’s already done incredible things with Volvo since taking ownership of the Swedish automaker in 2010. It’s making great strides with Lynk & Co. Its recent purchase of Lotus signals its intent to revive the fabled sports car brand. Now it’s pushing to get a piece of one of the biggest and most established automakers in the world.

You can make a case that Geely is turning into one of the big winners in the auto industry this year. Makes you wonder, too, what the future has to offer for the surging Chinese auto brand.

References


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Read more Daimler news.


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Read more Geely news.

PostHeaderIcon Lotus Finally Gets A New Owner!

For the longest time, Lotus seemed like the most under-utilized car company in the industry. At the very least, it ranks high on the list of automakers that have failed to live up to its potential. Fortunately, things are now taking a turn for the better for the beleaguered British automaker as Hong Kong-based automaker Geely acquires a 51-percent share in Lotus from its parent company, Proton.

In addition to the 51-percent stake in Lotus, Geely is also acquiring a 49.9 percent stake in Proton itself from the company’s parent firm, Malaysian conglomerate DRB-Hicom. The movement of all these chess pieces means Lotus is free from its struggling past ownership and under the watchful eye of Geely, the fledgling Chinese automaker responsible for reviving Volvo. Geely’s assumed goal to do the same for Lotus, which is largely credited for introducing some of the best handling, lightweight sports cars back in its heyday. It’s been a while since Lotus was a relevant name in the auto industry, but with Geely now in charge, there’s a lot of optimism in the air.

Continue after the jump to read the full story.


PostHeaderIcon Geely to Use Volvo's CMA Platform for New Car Brand

Lynk & Co. will make its highly anticipated launch on October 20, 2016, but as early as now, we’re already getting some details on what we can expect from Geely’s new car brand. One particularly useful nugget of information comes by way of Reuters, which is reporting that the new car brand’s models will be using Volvo’s compact modular architecture (CMA), the smaller offshoot platform that Volvo developed to complement the bigger SPA platform used on the XC90, S90, and V90 models.

The report ties up with the widely-known belief that Volvo’s new platforms will also be used by Geely and its other brands. Geely, after all, owns all of these companies, including China Euro Vehicle Technology (CEVT), the company that helped Volvo develop the platform. So from an economics standpoint, it makes sense for Geely to maximize the use of the new platform. It’s still unclear what kind of models Lynk & Co. plans to build, but a separate report from Automotive News indicates that Lynk & Co. will go the route of a sedan and SUV first with both models to be offered in the middle class market where rivals like General Motors and SAIC Motor Corp. are also in. Geely’s objective is to promote its own cars to compete against local rivals in China with Volvo tackling the premium market.

As expected, China will be the first market to get a hold of these models when they become available with other regions, including the U.S. and Europe, expected to follow suit at a later date. In any case, more details are expected to arrive when the brand officially launches on Thursday, October 20, 2016.

Continue after the jump to read the full story.


PostHeaderIcon Geely Set To Launch New Lynk & Co. Auto Brand

Chinese auto giant Geely is preparing to take the hybrid and plug-in hybrids by storm when it launches Lynk & Co., its first full-scale global auto brand. Described as an “affordable premium brand,” Lynk & Co. is going to be positioned as a fresh alternative to the growing market of high-mobility brands led by Tesla.

Details behind the company are likely to be announced when the brand is launched on October 20, 2016, but it is expected to focus its attention on being an industry leader in mobility, hybrid technology, and down the road, electrification. The objective, it seems, is to not only offer its future models in the U.S. and Europe, but to actually become as big a player as Tesla.

It’s an ambitious goal, but from at least one aspect, Lynk & Co. has the advantage of having a company like Geely backing it up. Money is unlikely to be an issue as the new brand gets off the ground. Same with resources and manpower since Geely operates large facilities in China and Sweden and can tap Volvo’s own engineers and their industry know-how to build and develop its models.

Then again, the new brand will no doubt face its own challenges, not the least of which is the automatic burden of convincing customers to buy into what it’s selling. In any event, we should get more details about Lynk & Co. when Geely officially launches the brand later this month.

Continue after the jump to read the full story.


PostHeaderIcon Geely Emgrand 7

The Geely Emgrand 7 is one of the most important export cars for the Chinese brand. The car itself has been designed to appeal to European tastes, regulations and safety expectations. As it stands the Emgrand 7 is the only car that was Chinese designed and built to score a four-star rating in the Euro NCAP crash test ratings. The Emgrand 7 debuted in 2009 and has carried on unchanged since that date. There is no refresh in site as we head into the 2014 model year.

A pair of fuel efficient engines and a pair of transmission options ensure that there are plenty of choices to meet the varied demands found across the Chinese and European markets. There is even a five-door variant of the 7 called the RV for buyers who need a bit more space.

Is the Emgrand 7 a good car for Geely to enter the U.S. market with? It has the spaciousness to match many of the current competitors, but a rock bottom price could help score it extra sales. Take a closer look at all the features of the Geely Emgrand 7 below and let us know in the comments if you think this seems like a good candidate for North America.

Click past the jump to read more about Geely Emgrand 7.

Geely Emgrand 7 originally appeared on topspeed.com on Thursday, 23 October 2014 14:00 EST.

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