Geely to launch dozens of car models after Volvo deal
Fresh from a deal to acquire Ford Motor Co.'s Volvo car unit, Zhejiang Geely Holding Group Co. is undertaking another ambitious move: a complete retooling of its branding strategy as it attempts to secure a position as one of China's top auto makers.
As part of the makeover, Geely plans to launch more than two dozen new models over the next two years, Frank Zhao, technology and product-development chief, said in an interview. That compares with just three new models last year. Most of the new cars will be on display at the Beijing International Automotive Exhibition kicking off Friday, including the latest version of the Emgrand GE, a luxury car first unveiled last year that was derided by some critics for its strong resemblance to the Rolls-Royce Phantom.
Geely, which is aiming to raise sales about sixfold to two million cars by 2015, will attempt to differentiate those new cars and make them appealing to a wider range of consumers by phasing out use of "Geely" and its Chinese equivalent as a brand name. Instead, the company will use three "baby" brands, whose English names are Gleagle, Emgrand and Englon.
While Geely is one of the best-known car brands in China, it hasn't generally been one of the most respected. Mr. Zhao acknowledges that "not too long ago, 'Geely' equaled bad quality." He says the latest batch of new models reflects an effort to rapidly improve Geely's technical capabilities. Mr. Zhao, who is leading that effort, quit his job as a senior engineer at Chrysler Corp. and moved back to his native China six years ago, joining Geely in 2006.
Geely last year sold about 325,000 vehicles, up 59% from the year before, and it aims to sell as many as 500,000 this year. It makes mostly smaller cars like the Panda subcompact and the King Kong compact. Its acquisition of Volvo potentially gives it the ability to improve Geely-branded cars using the Swedish company's technology, although Mr. Zhao says he has no immediate plans to do that.
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