Chinese automaker Geely Holding will not pursue new production facilities in Europe or the United States, citing global overcapacity and reduced appetite for global expansion in the current geopolitical climate, according to company founder and CEO Li Shufu.
In a recently released internal video, Li told company executives that building new plants overseas is not strategically viable. “We should avoid building production facilities – that is, purchasing land, constructing plants, acquiring equipment and hiring staff,” said Li. “Given the global overcapacity in vehicle production, this is not the optimal approach.”
See also: Geely Chairman Warns of Global Auto Overcapacity, Halts Expansion Plans
The remarks come as Chinese carmakers face mounting tariff pressure abroad and intensifying competition at home. While manufacturers like BYD continue to explore European production, Geely is taking a different route — relying instead on its existing assets and international partnerships.
Through its Swedish subsidiary Volvo Cars, Geely already operates factories in Sweden, Belgium, and the United States. In addition, its collaboration with Renault Group provides further international access, with Renault Korea Motors currently manufacturing the Polestar 4 on Geely’s behalf in South Korea.
See also: Geely Auto Launches First Self-Operated Car Carrier, Expands Export Logistics
Li emphasized the value of strengthening these ties over pursuing new construction. “We see more value in expanding our cooperation with Western automakers,” he said, pointing to markets such as Southeast Asia and Malaysia, where localized component production and skilled labor development remain key focuses.
While other Chinese automakers are looking to Europe to sidestep rising tariffs on China-made EVs, Geely appears committed to a partnership-based approach. With Chinese brands facing exclusion from the U.S. market and trade friction between Washington and Beijing escalating, additional direct investment in the West appears unlikely in Geely’s roadmap.
Source: Autonews