Geely breaks industry convention with new EV approach

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Chinese automaker Geely is planning to set up a new company that will examine new ways of product planning, marketing and sales of electric vehicles (EVs), breaking with the automotive industry convention that markets and sells EVs alongside traditional combustion-engine cars, according to a report in Reuters.

The plan is the latest approach by Geely to run its operations differently, following a flurry of tie-up announcements in recent months which aim to elevate the carmaker to one of the leading EV manufacturers in its own fight against Tesla's dominance of the industry.

Read more: China's Geely develops EV tech platform for own brands & rivals alike

Geely, which owns Volvo Cars and Daimler, will officially establish a new company, Lingling Technologies, later this year to manage models based on Sustainable Experience Architecture (SEA), its open-source EV chassis base, which it announced in September.

Reuters reported that its sources, who declined to be named due to the plan's secrecy, claim that Lingling will also take over the marketing and sales of SEA-based EVs, beginning with the Zero model, as well as those in its Geometry brand.

Geely has not commented on the news.

The company sold 1.32 million cars last year, but saw EV and hybrid sales decline with drivers turning to conventional petrol cars or to rival electric brands with greater driving ranges.

While the sources in the Reuters report mentioned the name Lingling Technologies, it was also stressed that the name has yet to be formally decided and the new entity is not yet registered.

Read more: Daimler & Geely to codevelop next-gen hybrid engines

The report also added that the new entity will conduct research and implement updates for SEA-related technology independent of conventional vehicle divisions, and will source market data differently to develop EV models accordingly.

It will have an independent sales team and will open showrooms in city centres, some with dealers and some self-managed where it will directly control pricing and inventory, two of the sources claimed.

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