【Geely 175】Li Shufu: Global automotive overcapacity is very serious; 17 Chinese-funded car companies are vying for market share

Geely Automobile （00175） When Li Shufu, Chairman of the parent company Geely Group, said in an interview with Bloomberg’s “Hyperdrive” that the auto industry has built too many plants, he noted that the issue of global auto production capacity oversupply is “Very seriously (very severe).” He said that 17 major Chinese auto companies are trying to grab as much market share as possible, but they are either not making money at all or only making very little.

Li Shufu said he is inclined to promote cooperation within the group to address the problem of weak auto demand, and to use the group’s own auto brand, Volvo, with its factories in Europe, to manufacture cars for multiple brands under Geely, with better management costs and less trade pressure.

Geely believes in localized production in Europe

The report said that Volvo is waiting for U.S. regulators to make a ruling on whether Volvo can continue to sell cars equipped with software developed in China. Li Shufu believes that whether in the United States, Europe, or China, all business activities of Geely under the group comply with regulatory requirements in different jurisdictions, so he is not worried about the matter. Volvo CEO H kan Samuelsson previously said that the relevant ruling is expected to be finalized before summer.

Li Shufu said that Geely does not like producing cars purely in China and exporting them to Europe, and that the group places more confidence in localized production in Europe.

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