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Business / Auto China

One brand strategy to return to Geely

By Lyu Chang (China Daily) Updated: 2014-03-05 09:03

One brand strategy to return to Geely

The reasoning behind the "one Geely" goal is that many of the cars resemble one another, and the competition among different lines is actually confusing consumers, industry experts said.

At the same time, these experts expressed concern about dealers withdrawing from the Geely distribution network because of uncertainty over the integration.

A dealer exodus also occurred after competitor Chery Automobile Co Ltd announced its single-brand integration plan in 2012.

Lou Tao, director of the auto marketing channel department at consultancy Sinotrust, said that integration is often accompanied by instability.

The impact of Geely's single-brand strategy remains unknown, but it has quickened its pace of overseas expansion and drawn up more plans for alternative-fuel vehicle development.

Geely, which paid $1.5 billion for the ailing Swedish carmaker Volvo Car Corp in 2010, recently announced its acquisition of British electric startup company Emerald Automotive.

 

 

 

 

 

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