SHANGHAI – Eric Li, founder of Chinese auto conglomerate Geely Holding, will step down as chair of flagship unit Geely Auto, handing the role to executive director An Conghui in a major management reshuffle aimed at long-term succession planning.
Li, who founded Geely four decades ago, will remain chair of Geely Holding Group. His departure will allow him to devote more time to other business commitments, the Hong Kong-listed company said in a stock market filing.
Under the changes, which take effect on Aug 18, executive director Gan Jiayue will replace Gui Shengyue as chief executive of Geely Auto, while Gui will become vice-chair.
“The board believes that Gan’s extensive management experience and industry expertise will enable him to lead the Group’s operations effectively and support the execution of the Group’s long-term strategic objectives,” Geely Auto said in the filing.
The reshuffle comes as Geely Holding, a major competitor to Chinese EV leader BYD and parent of Volvo Cars, Polestar, Geely Auto, Zeekr and Lynk & Co, grapples with intense competition in the world’s largest auto market, while accelerating its overseas expansion.
Geely executives, including Li, have stressed the importance of developing management talent as the automaker adapts to a slowing domestic market and expands abroad.
An’s appointment as chair also marks a shift away from a family-centred management model, Gui told a news conference.
“The company will no longer depend on individual charisma or authority, but instead on organisational systems and a structured talent pipeline,” Gui said, adding that the changes would support more professional decision-making.
Li said after the announcement that Geely would continue to pursue partnerships rather than build new manufacturing capacity abroad.
An said Geely Auto’s long-term goal was to generate two thirds of its sales outside China.
In July, Geely struck a deal with Ford to build electric SUVs at the US automaker’s plant in Spain and jointly develop a vehicle for the European market.
Geely aims to build a major presence in Europe, targeting annual sales of 600,000 vehicles within two to three years, Gan told reporters.
Volvo’s European factories will also produce luxury models for other Geely-owned brands, An said.
Geely Auto reported on Aug 17 a 15 per cent rise in first-half revenue and a 46 per cent increase in core profit. REUTERS
