The 'Geely' brand will withdraw from dealer system in 2012: Vice President

Shanghai September 6 (Gasgoo.com) Zhejiang Geely Holding Group Co. opened its biggest dealership last Friday in Shanghai, also its first dealership nationwide that sells vehicles under the Emgrand, Gleagle and Shanghai Englon banners. While the Geely brand will completely withdraw from its dealer system in 2012, First Financial Daily reported Monday.

"We will not promote this type of dealerships in most areas of the country, but we will in key areas which includes Nanjing, Tianjin, etc.. We will promote such dealerships in China gradually, said Liu Jinliang, Vice President of Geely Group," in an interview with the First Financial Daily.

The number of Emgrand dealerships will increase to 200 by the end of this year and stays around 250 by 2012. Geely Group will spend the next two years in helping its dealers improve profitability and services but not quantity. The Group will eliminate the dealers who do not meet its requirements, Liu said.

Geely Group has a relatively lower growth rate in the first- and second-tier cities at present, and a high growth rate of over 30% in the third- and fourth-tier cities.

With the launch of the Emgrand and Gleagle brand, the market position of the Geely brand, which is 60% positioned for urban users and 40% positioned for users in the third- and fourth-tier cities, will be changed thoroughly.

When asked when the Geely brand will be withdrawn from the market, Liu said the Freedom Ship and Vision brand will be gradually shifted to the Gleagle brand, the King Kong and Golden Eagle brand will be shifted to the Shanghai Englon brand, and the Geely brand will fade away completely in 2012.