At the Chongqing oto Forum 2026, Li Shufu, Chairman of Geely Holding Group, warned against the practice of many automakers abusing cost-cutting measures to produce low-priced oto. According to Sina, the head of Geely announced that the group would undertake a comprehensive strategic restructuring, resolutely abandoning the low-cost production model to focus on competitive, sustainable mainstream segments.
The "fast-food" gamble and human lives
Geely's chairman likened shortening vehicle development processes to maximize immediate profits to a "fast-food" philosophy. He emphasized that oto are high-value goods with a long lifespan, requiring rigorous testing procedures.
"oto safety directly relates to human lives. Therefore, engineering processes must always be transparent and verifiable, like a mathematical formula," he affirmed.
This view received significant agreement from experts and industry competitors. A BYD executive also warned that without independent research, merely copying or taking shortcuts would cause manufacturers to lose core market competitiveness.
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Geely's best-selling electric vehicle, the EX2, or Geome Xingyuan, at a display event in the UK. Photo: Glynhopkin
Eliminating redundancies for long-term competition
Li's warning came after Geely reported booming business results in May. Data from China EV DataTracker shows that the compact electric vehicle Geely Geome Xingyuan (EX2) leads the company's product line with 38,751 vehicles delivered to customers. The Geely Atlas L SUV followed with 13,395 vehicles.
Despite its growth trajectory, Geely decided on a strong overhaul to prevent risks. Li Shufu announced a phased closure of redundant and overlapping production units. All capital and resources will be concentrated on the core company, Geely Automobile Holdings Limited.
Paving the way for the next generation
This restructuring not only streamlines the apparatus and removes internal administrative barriers but also aligns with the succession plan outlined by Geely's leadership years ago.
The new organizational structure will clearly define the powers and responsibilities of each department, building a transparent corporate governance system. Geely's leadership expects this strategic alignment to transform the Chinese automaker into a competitive advantage on the global oto map, while protecting the interests of global shareholders.
Sales structure: "Newcomers" dominate
May vehicle registration data showed a clear sales concentration in Geely's key product lines. Notably, the recently launched "newcomer" Xingyuan immediately surged, accounting for 43.4% of the brand's total sales volume. The next two positions belonged to Atlas L (15%) and Coolray (14.4%).
In the premium segment, the Monjaro crossover maintained stable performance with 11,099 vehicles leaving dealerships. The Preface sedan followed with 8,592 units, contributing 9.6% to total sales.
Conversely, subsidiary brands and older vehicle models accounted for a small proportion of the group's total output. Specifically, the Panda mini achieved sales of 2,728 units, the Okavango L found 714 customers, and the trio of Icon, Binrui, and Boyue REV had combined sales of less than 1,200 vehicles.
Survival strategy for the new decade
According to Li Shufu, adherence to legal regulations and protection of intellectual property are fundamental, non-negotiable values. The head of Geely firmly rejects the trend of extremely shortening product lifecycles, which could harm a vehicle's structural durability over time. His goal is to build an operational culture robust enough to help the group navigate the fierce market consolidation and restructuring phase.
Geely's founder affirmed that this asset reallocation is a necessary preparation for the intensifying global competition. Consolidating capital to a single point will directly protect the company's core profit margins, ensuring continuous and uninterrupted business operations across international markets.
Li maintains that core technological differentiation is the company's only path to survival. He warns that any "shortcut" behavior disregarding classic manufacturing principles will incur significant commercial costs in the long term. This consolidation of forces is expected to be a launchpad protecting Geely's global competitive position for the next decade.
My Anh (according to CarNewsChina)
