Geely firmly sticks to sales target for 2020

Geely, China’s largest privately owned carmaker, announced it will not lower the sales target of 1.41 million vehicles for 2020 that it set earlier this year, according to its 2019 financial results release conference.

An Conghui, Geely Auto Group's president and CEO, said there would be no layoffs, no salary reductions and no delay in paying salaries at present.

Geely will adjust its internal organization, improve staff efficiency and be rational in planning new projects to cope with the impact of the global pandemic. Based on its long-term plan, it said it will not be affected by COVID-19.

One reason why the target is not being lowered is that six models will be launched this year, three under the Geely brand, two under Lynk & Co and one under Geometry.

"Releasing six models a year is a challenge for many car companies, which reflects the strength of Geely. The six new models will help Geely increase sales and further reduce costs," An said.

Geely sold a total of 1.36 million units in 2019, a decline of 9 percent year on year. But the company's market shares rose to 6.5 percent last year compared with 6.2 in 2018.

Geely said COVID-19 had added a lot of uncertainty to 2020, but its cash reserves gave it the confidence to face the pandemic. At the same time, it will also manage investments and costs to ensure a smooth cash flow.

The company said COVID-19 will not slow down the pace of its global footprint. For example, its Lynk & Co brand will still be launched in Europe in the fourth quarter as planned.

An said the advantages of Geely's global layout had been evident during the pandemic. 

“Through the effective coordination of multiple factories around the world," he said, “our costs have been reduced and efficiency has been improved. The impact of the pandemic on Geely has been reduced to the lowest."