Geely Auto Plans Capacity Overhaul to Boost Global Competitiveness

Geely Auto, a major player in China's competitive automotive sector, has committed to addressing its excess production capacity through a comprehensive asset restructuring process. The carmaker's objective is to strengthen its international standing and drive its global expansion.

Chairman Li Shufu revealed these plans during the Chongqing Auto Show on Friday. He stated that the company would undertake an assessment of oversupply across all its production units. This evaluation will determine whether to close, suspend, merge, or sell redundant production facilities.

This initiative is part of Geely Auto's broader strategy to navigate a crowded domestic market, where it is engaged in a fierce competition with BYD. By optimizing its production capabilities, Geely Auto aims to sharpen its competitive edge on a global scale.

According to South China Morning Post, the restructuring is designed to improve operational efficiency and support the carmaker's ambitions for greater international influence.