Geely, Faurecia reach global strategic alliance agreement

The three parties will found a joint venture and establish a global industrial zone. They will announce to construct factories in the manufacturing base of Geely Group, including Cixi of Zhejiang, Jinan of Shandong, Lanzhou of Gansu, Xiangtan of Hunan, Chengdu of Sichuan and Shanghai. These factories will design, develop and produce components such as main instrument boards, auxiliary fascia consoles, door panels, pillars and injection-molded bumpers for the corporation's brands. Thus, Geely can fully enter China's market, which indicates that it has taken the lead in modularization and globalization of development of components in the auto area throughout the country, and that the quality of Geely's products can live up to international criteria comprehensively.

Faurecia Group is one of the top 5oo enterprises and the 6th largest auto parts supplier. It focuses on developing and producing car seats, car interiors such as instrument boards and door panels, car exteriors like bumpers and exhaust systems, ranking respectively the first in Europe. Meanwhile, as the core supplier of Geely, Zhejiang Limin Co. has been supplying sets of services for several years, and knows well of its products and culture. After the set-up of the joint venture, the mature components by Faurecia Group can be matched and jointed through the platform of Zhejiang Limin Co. in a short period, managing the breakthrough in interior decoration and comfortability of all Geely models.

According to the trilateral cooperation agreement, the corporation newly established by the three parties will introduce a series of world-leading production facilities and workmanship with the most advanced technology, so as to meet the standard of "three highs and a low"-- high technology, high quality, high performance and low cost. The introduction will not only guarantee the quality of the interior and exterior decorations of Geely automobiles, but also enhance the company's ability to develop several projects. Under the context, components and parts of Geely automobiles are right on the track of a globalized, professional, systematic and modular leapfrog development.

Some experts claim that Geely's development mode on its supply of components and parts breaks through the traditional way of automobile industries of cooperating with suppliers, which highlights the leading role of main engine plants. It must be pointed out that Geely adopts the strategy of "one plus one plus one" platform, involving all the three parties. By doing so, local and cultural advantages are perfectly combined with advanced technology and quality superiority provided by top-level suppliers, as well as Geely's support. The combination will lift the quality of Geely's components and parts to the same level of international brands, and greatly shorten the investment cycle of international suppliers. As a result, Geely automobiles' quality will be improved, so does its globalized development. Geely will set a good example for other counterparts in this regard.

Chi Youzhang, the chairman of Zhejiang Limin Co., Ltd., addressed, "We have great responsibilities as a key supplier of Geely, especially when Geely is on the way up. It is not only our responsibility but also driving force to provide the most innovative and promising automaker with qualitative interior and external decoration and components. That is why we choose Geely and Faurecia as our partners."

Li shufu, the chairman of Geely, also delivered a speech. "It is a right decision to form strategic alliance with Limin and Faurecia. It is in the conformity with the principles of global economic development as well as Geely's global development strategy in the component sector. We will set up factories and focus on new-product development as soon as we sign the trilateral agreement. Our partners, as well as Geely, are destined to expand in the global car market. We hope our joint efforts can realize our dreams."

"The signature of the global strategic alliance agreement is of great importance for Faurecia's future development. To ensure a successful cooperation, the Faurecia team would like to contribute every necessary resource we have, and try our best to speed up the development of technology and products. As the CEO of Faurecia, I will look into the tripartite cooperation in person, and I hope we can produce new interior decorations through cooperation in the near future. At last, may great success rain over Faurecia's future development." French Faurecia Group's president and CEO Yann Delabrière said at the signing ceremony.