Geely sounds alarm on auto overcapacity


FILE PHOTO: Geely Auto logo is seen in this illustration taken January 16, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

SHANGHAI: The global automotive industry was facing “serious overcapacity” and that the Chinese automaker had decided not to build new manufacturing plants or expand production in existing facilities, according to Geely chairman and founder Li Shufu.

Li made the comments last Saturday at an auto forum in the central city of Chongqing, according to his company.

Geely Holding owns multiple automotive brands including Geely Auto, Zeekr and Volvo. His comments come as the Chinese auto industry, the world’s largest, has been locked in a brutal price war that is forcing many players to look to markets abroad and has prompted Chinese regulators to call for a halt.

Chinese automakers that have been building plants abroad include BYD, Chery Auto and Great Wall Motor.

Geely plans to use Renault’s Brazil facilities and take a minority stake in its local business, per a February announcement. — Reuters

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