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The Chinese auto industry continues to develop rapidly, and the latest big news was the official announcement of the merger of two subsidiary brands of the Geely Holding Group. We are talking about the merger of Geely Auto with the premium brand Zeekr, which previously operated as an independent structure focused on the production of high-end electric cars. As part of this deal, Geely Auto is buying out the remaining shares of Zeekr, which were previously held by third-party investors. The owners were offered two options - to receive monetary compensation or to exchange their shares for Geely Auto shares, which will ensure full control of the parent company over all assets of the premium division. This decision was made as part of the implementation of a strategy called "Return to a single Geely", the purpose of which is to reduce internal costs, improve the efficiency of all holding structures and increase the investment attractiveness of the brand in the international arena.
As a result of the merger, a significant expansion of production and technological potential is expected. The Zeekr brand is known for its success in the premium electric vehicle segment, while Geely Auto demonstrates a strong position in the production of models with traditional and hybrid power plants. Combining the resources of both companies will provide an opportunity to establish closer cooperation in such areas as the development of new platforms, optimization of logistics, the introduction of modern digital solutions in production processes, as well as improving the sales and service system. It is especially important to note that now the entire chain of car production will be under a single management - from design and assembly to sales and after-sales service. Such vertical integration will open up new horizons for Geely Holding Group, because the company will be able to quickly adapt to market requirements, reduce the cost of production and at the same time improve its quality.
Geely representatives have already confirmed that after the merger is completed, completely new model lines will be presented, which will be the result of the synergy of the engineering schools of the two brands. In addition to passenger models, it is planned to actively promote environmentally friendly transport on the market, including cars on hydrogen and methanol fuel. The company also plans to strengthen its position in the markets of Europe, the Middle East and South America, where there has been a steady demand for high-quality electric vehicles in recent years. By merging with Zeekr, Geely will be able to offer customers a wider range of vehicles, from budget models for city trips to luxury SUVs and sedans with a high level of autonomy. In addition, efforts to develop new platforms will accelerate the transition to more environmentally friendly technologies that meet modern environmental standards.
The management of Geely Holding Group, represented by Li Shufu, expressed confidence that the implementation of this transaction will be one of the key stages in the strategic development of the entire corporation. During a public speech, he emphasized that the announced merger will not only strengthen Geely Auto's position in China, but will also help the company become a serious player in the global automotive market. The transition to a single management structure will increase the transparency of all divisions, improve corporate reporting and allow shareholders to more clearly understand the prospects of the business. In the conditions of tough competition and growing pressure from Western manufacturers, such a step is perceived as timely and logical. It is expected that after the completion of all merger procedures, Geely Auto and Zeekr will begin to operate under a single brand, while maintaining the recognizable features of each brand, which will undoubtedly benefit both the company and the end consumer.