Even if Li Shufu dreamed, the launch of the new CK-1 car, "China-Korea-1," would be of great concern to the industry. What surprised him even more was that the “brand abandonment theory†that followed it was relentlessly put on the table by the media. This accidental passive situation made Geely chairman Li Shufu extremely angry. On the eve of the "11," he repeatedly emphasized at a Beijing media meeting that Geely would not give up the US and Japan, and love sedans. The concept of "making a good car that the people can afford" will never change. According to Li Shufu, a mid-level car attacker, Geely is currently re-planning its brand: Geely pride, the United States and Japan are positioned in the economical sedan, the American Leopard is positioned as a personalized sports car, and the Shanghai Maple sedan is an intermediate sedan. In fact, since the beginning of this year, Geely Automobile has secretly planned its formation and made full preparations for its entry into the mid-range sedan market. "Now the profit margin of the mid-size car market is still very high. After Geely enters the mid-level car market, it will certainly trigger a storm." Talking about the intermediate car Li Shufu is full of interest. Geely President Xu Gang also said: "To improve the product chain, Geely will focus on building mid-level car brands - Maple M303, to this end, Geely has also specifically adjusted the management structure of Maple, formerly joined by Geely's original Shanghai Volkswagen Nan Yang, the manager and vice president of Geely Holding Group, became the general manager of Shanghai Huapu.†In addition, Xu Gang said that the new production line of the Geely mid-size sedan CK-1, which was independently developed by Geely Research Institute and will be listed this year, has already begun. Installed in Ningbo, Zhejiang, this is the first new model of Geely Automobile with a background in Sino-foreign cooperation. To be sure, whether they are Maple M303 or CK-1, they will all enter the market at a low price. In the words of President Xu Gang, "Although the current real prices are not yet disclosed, they are definitely lower than the imagination of the market." The ongoing downturn in the price war and the unsuccessful testing of the car market test the endurance of each enterprise. In such a special period, either advance or retreat, each step of the game is significant. One important source of “brand abandonment theory†is that this brand, which is known as the price killer for economic vehicles, has its own flagship model pride and the United States and Japan. It is an exceptionally silent winter in this auto market. In the center of the price cut storm, Li Shufu and his Geely Automobile chose to “look on the sidelines.†When Li Shufu stayed away from the price-cutting storm with an image of an outsider, some people in the industry thought that Geely had taken a risky move. He wanted to use the reason of developing a mid-level car and gradually escaped from the bottom of profit-making economic vehicles. People in the industry have long thrown up their views: The profit of cars under 60,000 yuan is already very thin, and the price reduction space is very small. Xiali, Alto and other brands repeatedly cut prices and squeezed Geely cars. “We are not qualified to play a price war because Geely Automobile had already fallen to about RMB 3 million as early as five years ago. Any profit maker of this kind of profit space can figure it out.†Behind the price stick is Li Shufu. Helpless. According to Li Shufu, “The Geely car price is already in one step, and then it can only be a sacrifice of product quality. However, mid- to high-end cars are not so, because it still has huge profits.†In fact, when the price war is in full swing, Li Shufu is not Confidence, according to him, Geely is spending 350 million yuan to build a new Geely Automobile Research Institute. The role of Li Shufu's "bystander" was not completely performed. The new strategy appeared not to simply give up on the economical car Geely, but to personalize and segment the market. Geely relevant person in charge said that in the second half of this year, Geely Automobile launched the Pride Star 2 generation itself is a very good rebuttal. “We will allocate the existing Yunou Group, which is currently produced in Ningbo, to Linhai for production. At the same time, we will also establish an economical car production base in Linhai. We will produce Youliou, the US, Japan and pride. The existing Ningbo production line will also be carried out. The transformation will be used for the production of the China-Korea-1 project.†Li Shufu said bluntly that Geely Automobile will adjust its strategic layout soon. "However, Geely Automobile will not involve high-end cars, nor will it involve SUVs, MPVs, and commercial vehicles." Li Shufu stressed. In an era when multinational auto giants have started to “encircle and suppress†national brands, to what extent can Li Shufu reverse the fate of Geely? Perhaps this is the point of view of whether the Chinese and foreign auto markets can directly talk. (Author: Liang Meina)
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