Geely's transformation sets an example for Chinese economic transformation: expert

Geely's strategic transformation sets a good example for the economic transformation of China, said an expert at the Geely Strategic Transformation Results Seminar held at the Guangzhou Auto Show.

The Chinese economy faces a transformation from high energy consumption, low-tech, weak management, low added value to low energy consumption, high-tech, effective management, and high added value. If we do well in the transformation process, the future of the Chinese automobile industry will be like that of Japan and South Korea, or the auto industry of the Philippines and Indonesia will be our future, according to Liu Ge, financial commentator from China Central Television (CCTV).

Liu also made an example to explain his idea, "China produced 568 million tons of steel in 2009, which can be sold at 3,500 yuan ($525.714) per ton. If the steel were made into gears, the price would increase to 15,000 yuan ($2,253) per ton. But the steel used to produce Geely Emgrand can be sold at more than 60,000 yuan ($9,013) per ton. What we should be concerned about during the economic transformation is how much money we can make from a ton of steel."

Geely's strategic transformation started early and has led the Chinese manufacturing industry into the high-end market. The company also updated its production facilities and technologies in time, which increased the margins of raw materials such as steel. The purchase of world-class automakers such as DIS and Volvo contributed a lot for introducing advanced technologies from foreign brands.