Geely Auto releases strategy target for 2011

Geely's new strategy target for 2011 was confirmed December 28 last year at an annual meeting held in Hangzhou.

Geely will adopt "global strategy" this year, planning to become one of the World Top 500 enterprises through innovation and brand image building. It will shift its focus to "quality", changing from "rapid growth" to "steady growth", transferring to "brand line management" from "product line management".

Yang Jian, President of Zhejiang Geely Holding Group Co., Ltd said in the annual work report that Geely has made great progress in 2010 with sales volume exceeding 4.15 billion units, accomplishing the sales targets set last year. Geely's brand image and social status was greatly improved due to the great achievements it made in 2010 (as below):

Breakthrough in overseas M&A, progress in brand construction:

1. Geely made its appearance at the Beijing International Auto Show with 39 car models of three branch-brands and 14 engines;

2. Geely donated 22 million yuan ($3.32 billion) for disaster relief in Qinghai Earthquake, fulfilling its social responsibility;

3. Geely was awarded with "Green Company of China" for three years continuously, "Most respectable enterprise in China" for five years continuously, entering "Chinese TOP 500 Enterprises" for eight years continuously. Li Shufu, chairman of Geely Holding Group was honored as "Person of the Year in the domestic auto industry in the 21st century", one of "200 Most Influential Enterprise leaders in China", "Leader of Enterprise Cultural Construction in 2011", becoming one of the top three most satisfied entrepreneurs and the most influential Chinese entrepreneur in the world.

4. Geely purchased 100 percent of the equity of Volvo Group on August 2, 2010, entering a new era of the company's globalization development.

Breakthrough in technology innovation:

1. New car models such as HRV Cross, EC718 (CVT), EC8, SC5-RV, GX2 were put into market;

2. R&D of4G13T engine have made substantive progress;

3. Great breakthrough has been made in hybrid power technology;

4. Six car models, for example Panda 1.0 MT, were promoted by the government;

5. Hangzhou Technology Center was put into use;

6. G-PLM R&D system improved the efficiency and quality of R&D progress;

7. The first construction stage of the Automobile Security Technology Lab was completed, and is now capable of experimenting NCAP crash test;

8. Key laboratory of Zhejiang Automobile Security Technology was opened, where Geely held the first scholarship committee meeting;

9. BMBS second generation car prototype was developed;

10. Geely applied 1,516 patents last year, with a 61.4 percent growth year on year, among which 1,088 got patent authorization; Geely has already applied 3,254 patents in China, with 1,882 already given authorization;

11. "Innovation Project Construction of Geely Technology System" earned second prize of National Scientific and Technological Progress Prize (the first place was vacant), and Geely was the only auto company ever to win the prize.

Progress in brand management both in China and overseas:

1. Geely Group insisted on "brand competition" instead of "price competition" in 2010 by developing new marketing and service models to improve marketing ability and service quality;

2. Gleagle, Emgrand, and Englon developed greatly this year;

3. Great breakthrough has been made in the cooperation with Taiwan Yulong;

4. The after-sales service system was awarded with the prize "Golden Wrench";

5. Geely Service Call Center was awarded with "Best Customer Service" and "Best Customer Return Visit" by the Ministry of Industry and Information Technology with the competition of other 400 enterprises;

6. Geely's 5-year plan of "global strategy" was confirmed - build international marketing system with CKD assembling and sales in Russia and Indonesia, enter Cuban and Iraqi market. And the international sales volume rebounded in the fourth quarter.

Research and development:

The company adopted the strategy of "design for the market; cooperate with first-class automakers to improve efficiency; ensure the quality of the products; persist on "multi-brand development" to make sure the R&D projects such as the new car models project and the powertrain project are finished in time. Geely also furthered the study on new energy vehicle technology, intelligent vehicles, automobile security technology, energy-conservation and environmental protection technology, aiming to make "safe" the feature of Geely.
 
Operation & Management:

1. The focus of the company will transfer to: improve production capacity, automation and mechanization level; reduce labor intensity and cost; improve labor productivity, improve input-output ratio.

2. It has laid the foundation of the sales and production target of 2 million units.

3. The company aimed to build itself into a company with high competitiveness and equal atmosphere. It plans to earn the prize of "Best Corporation Management" among listed companies in Hong Kong.

Human resource:

1. It tried to build a global talent development system through combination of external recruitment and corporate universities;

2. Geely also increased average salary and reduced labor cost to create the image of "best employer."