Li predicts that Geely and other Chinese automakers will gain a firm foothold
in the international auto industry within the next 8 to 10 years. Yet Li is not
solely interested in making big plans, saying Geely is committed to making cars
with "Chinese characteristics".
"Our cars must have Chinese cultural identities," Li says.
"This point will make us more competitive and will help differentiate us from
foreign carmakers around the world."
Li Shufu answers
foreign journalists' questions at the Frankfurt
International Motor Show as his company
Geely was the only one Chinese automaker present at
the show on September 13, 2005.
[sina.com]
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Geely will continue to focus on
independent development, rather than simply assembling foreign brands like
China's top State-owned car manufacturers, such as SAIC, First Automotive Works
Corp and Dongfeng Motor Corp.
Geely will also invest billions of yuan over the next two years to bring its
research and development centre up to international standards.
"Independent development is a sword for us. Although it is not very sharp
now, it is our own sword and we will be able to use it to cut ourselves a share
in the international car market," he says.
Geely, which entered the auto industry in 1998, currently makes economy cars.
Its product lines include the Haoqing, Merrie, Freedom Cruiser, Ulion, Meirenbao
and Maple, and retail for between 30,000 yuan (US$3,700) and 80,000 yuan
(US$10,000).
Li says Geely's products will move upmarket once it starts launching models
equipped with 2.4, 2.5 and 3.0 litre engines. But he says the company will
maintain its focus on the economy car segment over the short term.
Geely now has a total production capacity of 300,000 cars a year in Zhejiang
and Shanghai. It is also planning to build new factories in Central China's
Hunan Province and Northwest China's Gansu Province with a combined capacity of
200,000 units.
China is the world's third biggest and fastest growing vehicle market. Total
vehicle demand rose by 14 per cent year-on-year to 5.74 million units in 2005,
including 3.12 million cars.
All of the world's major automakers have built plants in China, and some are
starting to export cars made on the mainland to foreign markets. Honda shipped
11,000 compact cars made in South China's Guangdong Province to Europe last
year. The Japanese automaker expects to increase its exports from China to
25,000 cars in 2006.
(For more biz stories, please visit Industry Updates)