Zhejiang Geely Holding Group Chairman Eric Li, also known as Li Shufu, said the company will continue consolidating its operations through closures, mergers, suspensions and restructuring initiatives as it seeks to strengthen its core automotive business and improve operational efficiency.
Li outlined the strategy during a video address at the 2026 China Auto Chongqing Summit, reaffirming Geely’s commitment to the strategic framework known as the “Taizhou Declaration.”
Geely to streamline corporate structure
According to Li, Geely plans to further simplify the relationship between Geely Automobile Group Co. and its Hong Kong-listed vehicle manufacturing arm, Geely Auto.
The company intends to eliminate overlapping business units and redundant entities in order to concentrate resources on its core listed platform.
“Next, we will further implement the five strategic pillars under the strategic framework of the Taizhou Declaration,” Li said.
He added that Geely aims to establish a modern corporate structure with clearer governance, well-defined responsibilities and greater operational efficiency.
‘One Geely’ strategy moves forward
Li said the restructuring efforts are designed to transform the concept of “One Geely” from a strategic vision into a sustainable competitive advantage.
“By closing, suspending, merging, and restructuring relevant redundant entities, we hope to build a modern corporate system with a clearer governance structure, defined rights and responsibilities, and highly efficient operations,” Li said.
The strategy comes as Chinese automakers face intense domestic competition, price pressure and growing demands for profitability.
Consolidation already underway
Geely has spent the past several years restructuring its automotive portfolio to reduce internal competition among brands and improve economies of scale.
A major milestone came in December 2025 when premium electric vehicle brand Zeekr completed its merger with Geely Auto and was delisted from the New York Stock Exchange.
The transaction made Zeekr a wholly owned subsidiary of Geely Auto and represented a key step in implementing the Taizhou Declaration.
Prior to that, Zeekr also completed the integration of sister brand Lynk & Co after acquiring a controlling stake in the company.
Sales supported by exports
Geely Auto reported a modest increase in vehicle sales last month despite continued weakness in China’s domestic automotive market.
The company said strong overseas demand and record export performance helped offset softer conditions at home.
As Chinese automakers increasingly pursue international expansion, Geely has focused on strengthening global competitiveness through organizational simplification and technology sharing across brands.
Focus on long-term development
In addition to discussing corporate restructuring, Li emphasized the importance of maintaining proper values in both management succession and product development.
He cautioned against shortcuts in vehicle development and criticized industry practices that prioritize speed over quality and safety.
“The birth of any new automotive product must comply with the objective laws of automotive product research and development,” Li said.
Rejecting ‘quick-and-dirty’ vehicle development
Li warned that automobiles are products directly linked to human safety and should not be developed using what he described as a “quick-and-dirty” approach.
“Automotive products concern human lives and safety, and vehicles must never be produced using a quick-and-dirty philosophy,” he said.
He specifically criticized efforts to shorten testing programs, compress validation timelines and bypass essential development procedures.
Leveraging global partnerships
Li said Geely has strengthened its understanding of automotive engineering and long-term product development through investments, acquisitions and partnerships with established global manufacturers.
The group maintains strategic relationships with several international automotive brands, including Volvo, Lotus and Renault.
According to Li, these partnerships have helped Geely build technical capabilities while supporting its transformation into a globally competitive automotive group.
As the company continues implementing the Taizhou Declaration, further consolidation across Geely’s portfolio is expected as it seeks to improve efficiency, strengthen brand positioning and support long-term global growth.