Wednesday, January 20, 2021

Geely Will Build Cars for Other Automakers


Geely will soon be building cars for other automakers. This is after the Chinese automaker signed a strategic cooperative agreement with Foxconn, a major Apple supplier to provide contract manufacturing, including whole vehicles, parts, drive systems, and platforms for other automakers.

It’s the latest move for Geely which in just the past month has signed strategic partnerships with two other Chinese tech giants, Baidu and Tencent. With Baidu, Geely will build a new electric car company using their newly-unveiled Sustainable Experience Architecture (SEA) platform, while for Tencent, they will jointly-develop smart vehicle cockpit and autonomous driving technologies.

In the short term, these partnerships will help increase Geely’s plant utilization rates which may push their total annual production to more than 2 million vehicles. In the long term, it’s strategically important for the Chinese carmaker as they transition towards more innovative and efficient manufacturing processes, and re-focus their business model based on CASE or Connected, Autonomous, Shared, and Electrified technologies.

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