From refrigerators to cars, this Chinese brand is going global

  In the automotive world, those companies with ambition can rapidly establish themselves on the global stage. The Americans were first, followed by the Germans, and then later, the Japanese and the Koreans. Now, it’s China’s turn. Or is it? A decade ago, if you drove a Chinese branded vehicle, they looked and felt like […]

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Geely is headquartered in Hangzhou, Zhejiang province

In the automotive world, those companies with ambition can rapidly establish themselves on the global stage. The Americans were first, followed by the Germans, and then later, the Japanese and the Koreans.

Now, it’s China’s turn.

Or is it?

A decade ago, if you drove a Chinese branded vehicle, they looked and felt like copies of older Japanese, European or American models. Not only were such vehicles viewed as illegal counterfeits of foreign models, their quality and safety were also questionable.

However, over the last few years, the quality of Chinese branded vehicles has gotten dramatically better, thanks in part to the knowledge acquired from joint ventures with industry heavyweights, acquisition of foreign technology and new product lines, or taking a sizeable stake in some of the industry’s big players needing fresh infusion of cash.

“Several years ago, we were challenged by tough questions such as, how could Geely overcome the lack of brand name recall, and the negative country-of-origin quality image that Chinese manufacturers have?,” related Alex Nan, GM of Geely Automobile International Corp.

Geely Research Institute in Hangzhou Bay, Zhejiang province in eastern China

What helped Geely lay a foundation for building a global corporate culture was its 2010 acquisition of Volvo from Ford Motor Co. Changes were dramatic, as the company quickly transitioned from a regional manufacturer focused on the domestic Chinese market to an international player.

From several more acquisitions that happened afterward—bought 51 percent of British sports car maker Lotus Cars as well as 49.9 percent of Malaysia’s Proton Holdings, and recently, the $9-billion purchase of a stake in Germany’s Daimler AG (Mercedes-Benz parent company) in 2018—Geely is now in a class of its own among Chinese auto makers as it is able to tap directly into advanced auto technologies.

“We seek to harvest synergies from these investments. As it turned out we were able to capitalize on our purchases and turned ourselves into better auto company,” added Nan who added that Geely’s parent company even bought US flying car start-up Terrafugia with the aim of introducing in just a few years, rides that are capable of vertical takeoff and landing.

CMA Kuka Welding

Another product of this synergy is British designer Peter Horbury, Volvo’s former styling boss, who has been leading Geely’s design department since 2012. Horbury was among those who shook things up when he initiated the redesign of the entire Geely line.

“Geely combines internally developed talent with talent brought in from elsewhere in the international automotive sector to form a diverse pool of skills and abilities. Right now, I am joined by Mikihisa Takayama of Soljitz who is a Japanese; Guy Burgoyne, GM and VP of Geely Design China who is British; and Dr. Hakan Sandquist, director of Strategy and Concepts at Geely Powertrain Research Institute Europe, who is a Swedish,” said Nan.

For a company that started as a refrigerator maker and didn’t build its first car until the late 1990s, Geely has to move much faster than the rest of the Chinese automakers, go up in market value fast, and rapidly narrow the quality gap with its international auto brand rivals.

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