Geely Motor Case Study

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Int. J. Chinese Culture and Management, Vol. X, No. Y, xxxx

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Geely motors: a Chinese automaker enters international markets Ilan Alon,* Marc Fetscherin and Marc Sardy
Rollins China Center & International Business Department Rollins College 1000 Holt Avenue 32789 Winter Park, FL, USA E-mail: ialon@rollins.edu E-mail: mfetscherin@rollins.edu E-mail: msardy@rollins.edu *Corresponding author
Abstract: On 22 January 2006, Shufu Li, the Director of International Marketing for Geely Motors, was rushing to the check-in counter at the Detroit Metropolitan Airport in order to travel back to Shanghai, China. He had just come from the Detroit International Auto Show where his company had presented its new car models. Geely (pronounced
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Two factories were used: one in Huzhou, the other in Quzhou, both in Zhejiang province. Among the initial products were the Haoqing, a 4-door sedan, later the LG-1 station wagon and most recently the PS4 sports car. Geely Motors was the first Chinese private enterprise to build passenger cars. In 2000 the Haoqing, equipped with a 4-cylinder Toyota engine, was introduced. Geely presented the PS4 sports car at the Shanghai Automobile Show of 2005, and started to sell them in China during 2006 (Exhibit 2 in Appendix A). By 2005 Geely Motors had four production facilities. One was a joint venture between Geely (53%) and the Quzhou Holding Co. (47%), an investment company listed in Hong Kong. Since 2003, Geely had also been working with Daewoo on a joint venture. In 2006 this venture had produced a new model of the PS4 sports car which had just been introduced at the 2006 Detroit International Auto Show. By 2006 overall production capacity for the four facilities were about 360 000 cars (Table 1).
Table 1 Geely production and capacity 127 950 86 535 71 555 360 000

Production 2005 Production 2004 Production 2003 Production capacity growth 2006

Source: Catalogue of the present Chinese motorcar production, China motor vehicle documentation centre, 2006

Geely motors: a Chinese automaker enters international markets

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The Chinese auto market

The Chinese Automotive
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