Letter from the Chairman
Zhejiang Geely Holding Group (ZGH), which I founded just over three decades ago, is a pioneer in the Chinese and global automotive industry.
Since our formation, we have emerged as one of the largest privately-held automotive groups in China. In 2010 we became the first Chinese group to acquire an overseas premium manufacturer: Volvo Cars. That transaction was followed in 2013 by the acquisition of London Electric Vehicle Company (LEVC), previously called London Taxi Company, the manufacturer of London’s iconic black cabs. And in 2017, we acquired a considerable stake in Malaysia’s PROTON Cars, a majority ownership of the renowned UK maker of sports and racing cars – Lotus and the pioneering US-based flying car company Terrafugia.
At each of our subsidiary companies, our ambition is to develop, design, manufacture and sell vehicles that exceed customer expectations. We aim to do so with market-leading technologies, low or zero emission powertrains, 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, leadership in autonomous drive, Scandinavian design and care for the environment. As a sign of their success, Volvo’s performance car division, Polestar split off into their own independent brand under the Volvo Car Group. The brand which was formed by engineers from multi-title winning racing group, Polestar Racing will continue their mission of finding out how race winning technologies can be applied to electrified performance road vehicles.
At Geely Auto Group, in which ZGH is the majority shareholder, we are consolidating our brands into a unified Geely Auto 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. The first LYNK & CO model 01 was launched in China in late 2017 and will be available globally from 2018.
In 2017, The London Taxi Company changed their name to London Electric Vehicle Company and opened the doors to its brand new production facility in the United Kingdom which was developed as part of a million GBP investment that has seen the company turn from a traditional vehicle manufacturer into a cutting edge developer of new technologies. LEVC recently unveiled their 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. The new LEVC and Yuan Cheng Auto forms the core of Geely Commercial Vehicle (GCV). GCV was formed to develop clear technological solution for the development and introduction of new energy focused commercial vehicles into the marketplace.
Recently, ZGH became the strategic partner of Malaysia’s DRB-Hicom, the majority owner of Malaysia’s national car company and brought Proton Cars into the Geely family of companies. Under this deal, ZGH is committed to seeing a full revival of PROTON to being the number one Malaysian domestic brand and a leading brand in the South East Asia Region. At the same time ZGH also took majority ownership of Lotus Car, opening up a path to the revitalization of the iconic British sports car brand.
In line with our commitment to innovation and new mobility solutions, we acquired American flying car company, Terrafugia which plans to launch the world’s first commercially available flying passenger vehicle in 2019 and the first Vertical Take Off and Landing (VTOL) flying car in 2023. We have also invested in Cao Cao, China’s first new energy focused mobility service. Cao Cao offers environmentally friendly mobility solutions in cities around the world. Service using more than 10,000 zero emission new energy vehicles is already available in over 18 cities and expanding.
Zhejiang Geely Holding is proud of these businesses, and values the managerial independence that enables each company to pursue its strategy.
In order to facilitate intergroup synergies, ZGH opened the China Europe Vehicle Technology (CEVT) research centre in Gothenburg, Sweden in 2013. The centre jointly run by Geely Auto and Volvo Cars works on developing modular architectures and key components used by the different brands among within the group. It has already developed the class-leading Compact Modular Architecture (CMA) used in the LYNK & CO 01 and Volvo XC40.
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.