In 2021, in the face of century-old changes and the normalization of epidemic prevention and control, new steps have been taken in building a new development pattern, and many industries have achieved new results under the guidance of high-quality development requirements, achieving a good start in the "14th Five-Year Plan". For the automotive industry, 2021 is also crucial. In this year, multinational giants, new car-making forces, including technology companies have concentrated on the new automobile territory, and independent brands, as the main force of the mainland automobile industry, have accelerated the pace of industrial transformation.
As one of the most representative and comprehensive enterprises in China's independent car companies, Geely Holding Group ushered in the 35th anniversary of its founding in 2021. Since entering the automotive industry in 1997, Geely Holding Group has always focused on industry, focusing on technological innovation and talent training, and constantly consolidating the foundation to practice internal skills. In the face of the upsurge of the automobile industry, we unswervingly promote the transformation and upgrading of enterprises and sustainable development, explore common prosperity, and embark on a path of progress for Chinese automobile brands with their own characteristics.
Geely lays out low-orbit satellites to create a science and technology ecosystem
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Extreme Kr 001
Geely methanol vehicles successfully went global and were tested in Iceland
Global vision Global governance creates diversified brand value
As the only Chinese automotive group in the top ten global automotive brand portfolios, Geely Holding Group is committed to smart electric mobility and energy service technology companies with global competitiveness and influence. Looking at the industrial layout and brand portfolio of Geely Holding Group, you will be surprised to find that this global enterprise group headquartered in Hangzhou not only owns geely, Lynk & Co, Extreme Kr, Geometry, Volvo, Polestar, Proton, Lotus, British Electric Vehicles, Long-range New Energy Commercial Vehicles, Cao Cao Chuxing and other brands, but also covers a variety of fields including passenger cars, commercial vehicles, travel services, digital technology, financial services, education and other fields.
In 2021, Geely Holding Group achieved total sales of more than 2.2 million vehicles in the whole year. Among them, Geely Automobile (including Lynk & Co, Geometry and Extreme Krypton) sold 1.328 million units, winning the first place in the sales of passenger cars of Chinese brands for five consecutive years; its luxury brand Volvo Cars achieved global sales of 699,000 units, with sales of 172,000 units in the domestic market, which is the traditional luxury car brand with the highest proportion of electrification product sales; Andet Automobile's sales exceeded the 100,000-unit mark for three consecutive years, reaching 115,000 units, becoming the only car brand in Malaysia with sales volume and market share growth for three consecutive years.
From scratch, from small to large, Geely Holding Group is able to blossom in multiple fields and in various markets around the world in the face of complex and fierce market competition, which is closely related to its mature corporate governance concept with a global vision. Although the Group has a number of brands, each brand is independent and cooperative development among themselves, and each actively participates in market competition around user and brand positioning. Each project is an independent economic unit that plays a different role in the grand strategy and ecosystem of Geely Holding Group. At the same time, various brands also actively seek synergy in basic technology research and infrastructure development, and share resources to the greatest extent, thus creating greater value for users.
"Full authorization, compliance in accordance with the law, clear assessment, fairness and transparency" is the international operation and management policy strictly followed by Geely Holding Group. The most successful case under the guidance of this policy is volvo Cars' "high-light decade" under the Geely Holding Group.
In 2010, when Geely Holding Group acquired Volvo Cars, the outside world was not unanimously optimistic, and some people even raised the question of "snake swallowing elephant". In the face of external doubts, Geely Holding Group has established a three-tier governance structure composed of shareholders' meeting, board of directors and management, and strictly adheres to the clear management idea of "Geely is Geely, Volvo is Volvo". Ten years of persistence can be described as a miracle all the way, and the once unpromising acquisition of the world's traditional luxury brands by Chinese car companies has finally become a classic merger and acquisition case praised by the industry and outside.
After ten years of coordinated development, Volvo has consolidated its position as a luxury brand, improved its profitability and achieved brand development. Global sales jumped from 335,000 units in 2009 to 699,000 units in 2021, with sales in the Chinese market more than fivefold. On October 29, 2021, Volvo Cars was officially listed on the Stockholm Stock Exchange in Sweden, which became another milestone in the history of The Volvo Cars brand development and marked the realization of the expected goals in Volvo Cars' ten-year transformation path.
In addition to Volvo Cars, Geely Holding Group has seized the opportunity and taken active actions to explore the diversified development of overseas business of Chinese auto companies and promote the transformation and upgrading of the development model by taking advantage of the development opportunities of the "Belt and Road" construction. Among them, the most talked about is the investment in Proton Malaysia.
In 2017, Geely Automobile Group acquired a 49.9% stake in Proton Motor and is fully responsible for the operation and management of Proton Motor. The "Beidou Seven Star Strategy" launched with this opportunity has opened a precedent for Chinese brands to systematically export technology, standards, talents and products to foreign countries, realized the transformation from the "going out" of single product trade to the "walking in" of deep participation in local industrialization, and effectively enhanced the influence of Chinese brands in the world.
In less than two years, Proton Has achieved a turnaround, with sales exceeding 100,000 units in 2019 and its market share rising to 16.7%, ranking second in the Malaysian market dominated by Japanese cars. In 2021, Proton sold 114,700 units, an increase of 4.5% year-on-year, achieving sales of more than 100,000 units for three consecutive years. The win-win cooperation between Geely and Proton in Malaysia has played an important demonstration role for other Belt and Road projects.
Low-carbon first innovation leads to create a new core competitiveness of the industry
Under the guidance of low-carbon emission reduction goals, under the background of the gradual improvement of science and technology in the networked society, the automobile industry is ushering in a major change that has not been encountered in the past century, and zero-carbon reform and technological innovation have become new breakthroughs and keywords in the automobile industry. Geely Holding Group, which is in the changing situation of the times, has in-depth and mature thinking and summary on how to build a corporate moat around the new development direction of the automobile industry.
As a leading enterprise in the domestic automobile industry, Geely Holding Group closely focuses on the electrification and intelligent transformation of the automobile industry and actively lays out. In the field of new energy, Geely Holding Group fully considers the global and China carbon peaking and carbon neutrality timetables, carries out diversified layouts from the three fields of passenger cars, commercial vehicles and shared travel, actively explores diversified new energy and new material technology paths such as pure electricity, hybrid and methanol, and creates a low-carbon sustainable development path.
At present, in the field of passenger cars, Geely Holding Group has issued two "blue action plans", launched a new smart pure electric brand Extreme Kr, and released the "Raytheon" intelligent and efficient new energy hybrid solution, Geely Holdings' Geely, Volvo, Polar Star and other brands have also announced the "carbon neutrality" plan. In the field of commercial vehicles, Geely Holding Group established China's first commercial vehicle group focusing on new energy, and built a green capacity platform, a green energy replenishment network, and launched a new generation of new energy intelligent heavy-duty truck Xinghan H on the basis of the new energy commercial vehicle business.
In addition, it is particularly worth mentioning methanol, as one of the recognized carbon-neutral energy sources, carbon dioxide coupling chemicals have been included in the "14th Five-Year Plan" industrial green development plan as a carbon emission reduction technology. Geely has been deeply engaged in methanol vehicle technology for 16 years, continues to promote the large-scale application of methanol vehicles, and explores the innovative development path of green methanol technology. Especially in the field of passenger cars, which are closely related to users, Geely's methanol passenger cars have been operated on a large scale in China by 27,000 vehicles, with a total operating mileage of 8 billion kilometers and a maximum single mileage of 1.2 million kilometers. At the same time, Geely's methanol vehicles have also been tested in Iceland and Denmark, and will be promoted to relevant European countries in the future, contributing China's wisdom and strength to achieve the global double carbon goal.
Scientific and technological freedom and industrial cross-border are another catalyst for creating human business dreams. As the core competitiveness of the automobile industry begins to tilt toward intelligence, Geely Holding Group takes the initiative to meet the change, leads the development with innovation, continuously increases investment in research and development, enhances the ability of independent innovation, masters the core technical strength, and creates a hard-core technology ecosystem integrating online and offline and heaven and earth.
Among the top ten enterprises in China's R&D investment in 2021, Geely Holding Group is the only automobile company. Geely not only lays out new energy technology, on-board chips, internet of vehicles, intelligent driving and other fields, but also works hand in hand with the upstream and downstream industrial chains, and at the same time cross-border layout of low-orbit satellites, smart phones and other businesses, around the automotive industry ecology, to create a technology moat.
In fact, including satellites, chips, mobile phones, etc., every business of Geely Holding Group is based on automobiles, and all work revolves around the automobile business.
Taking satellites as an example, before Geely, there was no enterprise on the mainland that really opened up the whole industrial chain layout of commercial aerospace. Geely has opened up the entire chain including satellite research and development, manufacturing and constellation networking, measurement and control, application, etc., and has become the first enterprise in China to build a car and a star.
At the just-concluded Beijing 2022 Winter Olympics, 80 hydrogen fuel cell city buses under Geely Commercial Vehicles provided special vehicle support services to escort the "Green Winter Olympics". In addition to the Beijing Winter Olympics and Paralympic Winter Games, the mainland will also welcome another sports event, that is, the 19th Asian Games, which will be held in Hangzhou in September. It is foreseeable that in addition to the athletes who strive to interpret the spirit of sportsmanship, Geely Holding Group will also become one of the most noteworthy points of attention at this Hangzhou Asian Games.
Like the Beijing Winter Olympics, the Hangzhou Asian Games will also take "green" and "smart" as the core concept of hosting the games. On this basis, Geely Holding Group put forward the overall strategy of "Science and Technology Geely, Yuexing Asian Games", using its strong advantages in electrification and intelligence to provide travel services for the Hangzhou Asian Games in an all-round way.
At that time, there will be a number of brands including Geely, Extreme Kr, Lynk & Co, Geometry, etc., more than 1800 passenger cars for the event connection service, many of which use pure electric technology or plug-in hybrid technology as the power source, and all vehicles will achieve "centimeter-level" vehicle location services. Of particular concern is the Krypton 001 model, a pure electric product born under the SEA Haohan intelligent evolution experience architecture, which not only achieves zero carbon emissions, but also carries the "Krypton Pilot" intelligent driver assistance system, and can also realize the reservation-based connection service based on intelligent driving assistance technology in the core area of the specific route from the Asian Games Village to the main stadium of the Olympic Sports Center.
People-oriented, win-win cooperation, the pursuit of sustainable development
The automotive industry is changing, scientific and technological innovation is changing with each passing day, and user needs are diversified and upgraded... The automotive industry ushered in a new era of change. Geely Holding Group, not only has a sense of urgency to seize the day, closely focuses on the electrification and intelligent transformation of the automobile industry, creates a technology moat to strengthen the ecosystem, and pays more attention to building the sustainable competitiveness of enterprises and consolidating the strong foundation of its own sustainable development.
As a responsible global enterprise, Geely Holding Group not only pays attention to the growth and development of the business sector, but also hopes to contribute to global sustainable development by practicing the ESG (Social, Environmental, Governance) concept. At present, Geely Holding Group has set up an ESG committee at the board level to coordinate and promote ESG and sustainable development-related work. On January 6, 2022, Geely Holding Group also officially joined the United Nations Global Compact (UNGC) to promote its own sustainable development on a higher platform.
The UN Global Compact, as the world's largest international organization promoting corporate social responsibility and sustainable development, is affiliated with the UN Secretariat. As a member of UNGC, Geely Holding Group will fulfill the ten principles of the Global Compact, which are based on UN conventions, covering human rights, labour standards, the environment and anti-corruption, and contribute to the achievement of the 17 UN Sustainable Development Goals. It also prepares an annual sustainability report and reports on progress to the United Nations Global Compact.
There are both stars and seas, as well as wind and drizzle. Geely Holding Group's sustainable development philosophy, while having a global perspective, also pays attention to hundreds of thousands of ordinary employees within the group. Geely knows that enterprises should actively build a community of destiny relationship with employees, only by letting front-line workers work with a head, life is guaranteed, the family is well-off, creating their own professional value in the industrial chain, harvesting dignity, achieving dreams and happiness, the company's products can have quality assurance, the company's culture has deep roots, and the development of the enterprise can have vitality.
In order to achieve people-oriented cooperation and win-win cooperation on the road of sustainable development, in June 2021, Geely officially launched the Geely Common Prosperity Plan to promote the transformation of enterprises from efficiency priority to fairness priority, drive the sustainable development of Geely's entire industry chain, and achieve industrial common prosperity.
After that, on July 3, Geely Holding Group released the Action Plan of the Common Prosperity Plan, further improving and implementing a series of measures including the full income growth plan, the full family health insurance plan, and the full career improvement plan. On August 20, as part of Geely's total income growth plan in Geely's common prosperity plan, Extreme Kr took the lead in releasing a share incentive plan, issuing 56 million shares of Extreme Kr to more than 3,000 employees; on August 30, Geely Automobile granted 167 million shares of Geely to more than 10,000 employees, allowing more core employees to change from "workers" to "partners".
On November 5, geely gratitude fund was launched. Geely's dedicated fund for the common prosperity program is now valued at nearly $500 million. Different from the grant of shares, the Gratitude Fund will start from the subtleties to improve the working and living environment of employees, help the education of employees' children, and improve the income level of low- and middle-income employees. So as to enhance the sense of security and happiness of employees, stimulate the "meta-motivation" of employees, and achieve common prosperity.
Whether it is laying out the global market, or building the core competitiveness of the industry, or consolidating the foundation of sustainable development, it can be regarded as the truest portrayal of Geely Holding Group. The next thing Geely Holding Group has to do is to seize the strategic opportunity period, maintain both the original intention and firm confidence, show new responsibilities in green and low carbon, achieve new deeds in integrity and innovation, empower new technologies in the sports year, and shine a new look in common prosperity. Create continuous competitiveness of enterprises, sharpen new technologies and new products, create more value experiences beyond expectations for users, and lead the way for the enterprising of Chinese auto brands.