Geely founder Li Shufu steps down
Chinese automotive entrepreneur Li Shufu is stepping down as CEO of Geely Auto. The Chinese businessman gained sudden prominence in Europe when he acquired a nearly ten per cent stake in today's Mercedes-Benz Group AG (formerly Daimler AG) in 2018.
Li Shufu has shaped an era in the Chinese automotive industry – but as of 18 August, Geely’s founder, chairman, and executive director of the automotive division is stepping down. The company announced the move on Monday. Simultaneously, Li Shufu will be appointed honorary chairman for life.
Succeeding him as chairman of Geely Automobile is An Conghui (also known as Andy An). According to Handelsblatt, he has long been part of the group’s leadership circle and is expected to “align the automotive division’s strategic direction more closely with the majority shareholder”. Industry experts primarily recognise Andy An as the CEO of Zeekr.
With Li Shufu’s departure, Geely Auto is also undergoing an operational restructuring. Gui Shengyue will transition from his current role as CEO to vice chairman, a position being vacated by Li Donghui. The new CEO will be Jerry Gan, who is set to “lead the Group’s operations effectively and support the execution of the Group’s longterm strategic objectives,” as stated in the announcement.
However, Li Shufu will remain in the top position at Geely’s parent company, Zhejiang Geely Holding Group. Due to his ownership stake, he will continue to play a central role in the group: “He remains the significant and controlling shareholder of Geely Automobile and retains his role as chairman of Zhejiang Geely Holding, which includes not only Geely but also stakes in international automotive brands such as Volvo and Smart,” writes Handelsblatt. Regarding his stake in Mercedes-Benz, held through investment company Tenaciou3, Automobilwoche emphasised that “this investment is unaffected by the current developments in China.”
More intriguing than the focus on international holdings is the domestic situation. Li Shufu is leaving Geely Auto at a particularly challenging time, as demand for EVs in China has been declining for months. The market is currently driven by increasing exports – and is stabilising. In the last quarterly report under Li’s leadership, Geely Auto achieved record revenues (+15 per cent year-on-year) and a 26 per cent increase in gross profit, which highlights the company’s strong performance amid market conditions. However, at Geely, current exports are the primary drivers of growth.
geelyauto.com.hk (PDF), geelyauto.com.hk (PDF, Annual Report), handelsblatt.com, automobilwoche.de,