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Geely profit falls, new EV JV and brand announced | Automotive Industry News

Geely Vehicle Holdings on Tuesday (23 March) announced a joint enterprise with its dad or...

Geely Vehicle Holdings on Tuesday (23 March) announced a joint enterprise with its dad or mum group for electrical cars (EV) and a new brand name referred to as Zeekr but its shares fell about six% on news its 2020 revenue dropped by a third, a media report mentioned.

Geely Vehicle marketed 1.32m autos last 12 months, down from 1.36m in 2019, as auto income in the world’s major market was strike by the COVID-19 pandemic, Reuters mentioned.

All round auto income in China fell 1.nine% to twenty five.3m cars in 2020, in accordance to field info.

Geely Vehicle also mentioned on Tuesday it and its dad or mum group will type a joint enterprise for electrical cars (EV) and start a new brand name referred to as Zeekr, and its revenue fell 32% last 12 months.

In a stock trade filing cited by Reuters, Geely Vehicle mentioned the enterprise would function on analysis and development, acquire and sale of good electrical cars less than the Zeekr brand name.

Geely Vehicle and dad or mum Zhejiang Geely Holding Group will jointly commit CNY2bn in the new enterprise. Geely Vehicle will own fifty one% of the new business, it mentioned.

Hangzhou-centered Geely Vehicle, optimum-profile Chinese automaker in the world because of to the dad or mum group investments in Volvo Automobiles and Daimler, posted 2020 revenue of CNY5.53bn (US$850m), vs . CNY8.19bn in 2019.

A single analyst expected Geely to publish a revenue of CNY4.02bn, in accordance to Refinitiv info. Earnings fell 5% from the prior 12 months to CNY92.11bn.

It expects to offer 1.53m autos this 12 months, Reuters mentioned.