Daily Management Review

Geely Automobile's annual profit falls by 32%


Chinese holding Geely Automobile reported a 32% drop in profits for 2020, saying that the company's performance was affected by the COVID-19 pandemic.

Autoblog Uruguay via flickr
Autoblog Uruguay via flickr
The automobile concern's net profit fell to $850 million. Revenue fell 5% to $14 billion. The company sold 1.32 million vehicles last year, while 1.53 million were sold in 2019. 

At the same time, the management of Geely Automobile notes that the company remains the sales leader among Chinese car manufacturers for the fourth year in a row.

In addition, the Chinese manufacturer announced creation of a joint venture with parent company Zhejiang Geely Holding Group Zeekr Company Limited, which will produce electric cars under the new Zeekr brand. 

According to the company's statement, both parties to the joint venture will invest more than $300 million. Geely Automobile's share in the joint venture will be 51%. The first electric cars are expected to be produced in the third quarter of 2021. 

At the same time, the manufacturers intend to be launching a new electric car model annually in the next 5 years and focus initially on the Chinese market, as well as "to explore export opportunities to meet the demand in the global market for premium electric cars.

source: bloomberg.com