Chinese carmaker Geely has reported solid sales and profit for the first half of 2017. Q1 2017 profit more than doubled, the sharpest jump in eight years, thanks to well-received China domestic models designed with its Swedish unit Volvo, Reuters reports.
The Hangzhou-based carmaker, which also has a stake in Malaysian carmaker Proton, shifted a good number of the GC9 sedan and Boyue SUV in China, where auto sales growth has of late softened.
“So far in 2017, the group’s performance has exceeded management’s original expectations despite a generally weaker market in China during the same period,” the company said in a statement to the Hong Kong stock exchange.
Net profit stood at 4.34 billion yuan (RM2.79 billion), 128% higher than the 1.91 billion yuan the company made in the same period last year and beating estimates. This was underpinned by sales that jumped 89%
Sales jumped 89% in the first seven months of the year, which led to Geely raising its full year sales target by 10% to 1.1 million units in 2017. That’s a huge jump from the 766,000 vehicles Geely sold in 2016.
The main driver is domestic sales. The business environment in key export markets such as Eastern Europe and the Middle East remained weak, Geely says, and it expects no change for the rest of 2017.
In the future, Geely will deploy the new Lynk & Co brand in developed markets such as Western Europe and the US. Earlier this month, Geely completed the formation of two new joint ventures with Volvo to co-operate on automotive technologies, purchasing and the future development of the Lynk & Co brand.
“These joint ventures will create significant value for our automotive brands. We aim to deliver global economies of scale by facilitating closer cooperation between our brands on shared vehicle architectures, powertrain development and electrification, while offering synergies that will enable Lynk & Co to achieve its full potential,” Geely chairman Li Shufu said at the JV’s signing ceremony in Hangzhou.
The hot-selling Boyue (it was launched in March 2016, but demand still outstrips supply today) will be the base of Proton’s first ever SUV that will debut next year. We’ve driven the Boyue, and you can read our first impressions report.
GALLERY: Geely Boyue
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that front grill must go. otherwise its a nice car.
This is why we need China. Only China can bring discipline and hard work into the work arena. I hope more mainland people come in and infact replace the staff of Proton. Geely owns 49.9% of Proton and Proton has 12,000 workers. This means Geely can put 5900 mainland workers into Proton.
Proton profit and productivity will 10 fold and profits will jump so high!
Only more autonomous can improve productivity, otherwise, P1 workers just follow takt time given, so no loss in productivity
Proton gips untungg lebey. Congrats Li Shufu!
Yeah… Right…
Geely > all
Volvo > all
Lotus > all
Lynk & co > all
London Taxi > all
Proton > all
inb4.. oh wait.. alredi in. Dem u
The sedan looks like Accord with mazda grille
And the profit will take a dent (very small one) when Proton also “input” into the Geely’s P&L
We can never know. Maybe even bring geely into the red.
DRB Hicom so happy can escape from Proton financial jail.
It will have very, very small impact.
As Geely doesn’t have control in Proton, Proton is only an associate. Geely cannot consolidate their account with Proton’s.
Control is still with DRB, so DRB will continue to consolidate Proton’s account.
If Geely wants control for Proton, they’d want it to be profitable first, hence in line with their statements of wanting to get Proton back in black ASAP.
It means Proton can continue making losses, no worry at all.
Enjin proton yang jv dengan ricardo tu senyap terus ke?
2018
Masa proton start JV tu, belum ada apa halatuju di masa depan. Baru je korek2 cari Siapa nak jadi rakan strategik proton. La ni, dah ada geely. Geely dan Volvo dah ada enjin yg high tech dan lepas euro 6. Proton tak perlu beli enjin lain. Buang duit.
Enjin tu memang senyap. Wartawan yg bgtau mcm tu masa first firing ceremony.
i’m more interested with the financial report post Proton buy over era for Geely.
Geely will register lower profits from 2H 2017 due to heavy losses in it’s subsidiary Proton.
Proton will make history in the world of automotive.
It will meet the equilibrium with Proton.
Its ‘more than double…’ instead of ‘doubles’. Need a proof reader at paultan.org?
Boyue looks 2 X better than the new CR-V.
Sorry, beauty is very subjective.
Geely GE also looks much better than the original Rolls Royce Phantom.
Ah I see you’re a man of culture as well.
Genuine European design by former Volvo’s designer himself vs Jepunis copycat Volvo’s design. Of course we know which is better.
Proton’s design department please don’t berpandai-pandai ke-kiang change this change that to make it more ugly.
Don’t worry next year will will see billions of losses incur with the new recent JV.
He he he he. How nice if our billions of tax $$$ was invested into Geely 20 years ago. We would be reaping profits now.
This Boyue/Proton SUV will sell.