Letter from the Chairman
Zhejiang Geely Holding Group (ZGH), which I founded three decades ago, is a pioneer in the Chinese automotive industry.
Since our formation, we have emerged as one of the largest privately-held automotive groups in China. And in 2010 we became the first Chinese group to acquire an overseas premium manufacturer: Volvo Car Corporation. That transaction was followed in 2013 by the acquisition of the London Taxi Company, the manufacturer of London’s iconic black cabs.
At each company, our ambition is to develop, design, manufacture and sell vehicles that exceed customer expectations. We aim to do so with market-leading technologies, low-emission engines, class-leading designs and an overriding commitment to quality and safety.
Since the acquisition of Volvo Cars, the famous Swedish automotive group has launched a product offensive, returned to sustainable profitability and begun manufacturing in China. Its expansion forms part of a strategy to lift annual sales to 800,000 cars by 2020. Volvo, which is managed independently, is pursuing a global expansion strategy that builds on its well-deserved reputation for outstanding safety, a leader in autonomous drive, Scandinavian design and care for the environment.
At Geely Auto Group, in which ZGH is the majority shareholder, we are consolidating our brands into a unified Geely business that will serve the Chinese domestic and export markets with fuel-efficient, reliable, safe and high-value models. In October 2016 Geely Auto Group launched its new global brand; LYNK & CO. This new brand aims to satisfy a new generation of consumers that are looking for a new type of mobility solution that allows cars to be shared, rented or bought outright. LYNK & CO will be launched in China in late 2017 and be available globally in 2018 to 2019.
Our third core asset, the London Taxi Company, recently opened the doors to its brand new production facility in the United Kingdom which was developed as part of a 300 million GBP investment that has seen the company turn from a traditional vehicle manufacturer into a cutting edge developer of new technologies. London Taxi’s first new product in 30 years; the TX5 is a zero emissions capable vehicle that utilizes technology from across the wider Geely Holding Group and aims to bring a new level of mobility and lower urban emissions in the cities in which it operates.
Zhejiang Geely Holding is proud of these businesses, and values the managerial independence that enables each company to pursue its strategy.
Where it makes business sense, we are exploring technical cooperation, reflected by the opening of the China Europe Vehicle Technology (CEVT) research facility in Gothenburg, Sweden. This facility is developing module architectures and key components to be used by Geely Auto Group and Volvo in the future.
Aside from our operating strategy, Zhejiang Geely Holding is – above all – a people organisation. We prioritise the education, career development and well being of every individual in our Group. That is why we have invested heavily in higher-education institutions and in research and development programmes. We also value the managerial skills of our executive teams, encouraging creativity in every part of the business.
Finally, and most importantly, we value our customers. A vehicle is a highly discretionary and valuable purchase decision. We are committed to ensuring that every model we produce combines customer appeal with outstanding quality.
Zhejiang Geely Holding Group and its operating companies are determined to produce such vehicles in a sustainable, efficient, people-friendly way for markets around the world in the 21st Century and beyond.