Geely founder Li Shufu is retiring
Chinese automobile entrepreneur Li Shufu is stepping down as CEO of Geely Auto. He became widely known in our region when he acquired a nearly 10 percent stake in what is now Mercedes-Benz Group AG (formerly Daimler AG) in 2018.
Li Shufu shaped an entire era in China’s automotive industry. Effective August 18, the founder of Geely, as well as its chairman and executive director of the publicly listed automotive division, is now stepping down. The company announced this on Monday. At the same time, Li Shufu will be appointed honorary chairman for life. An Conghui (also known as Andy An) will take over as the new chairman of Geely Automobile. According to the “Handelsblatt,” he has long been part of the company’s leadership team and is expected to “align the strategic direction of the automotive division more closely with the major shareholder.” Andy An is currently known to industry insiders as the CEO of Zeekr.
With Li Shufu's departure, Geely Auto is also reorganizing its operations: Gui Shengyue is moving from his current CEO position to the role of Vice Chairman, a position vacated by Li Donghui. Jerry Gan will become the new CEO, “who will go on to oversee day-to-day operations and the implementation of long-term strategies,” according to the report.
Li Shufu still holds the top position at Geely’s parent company, Zhejiang Geely Holding Group. Due solely to his ownership stake, he remains a key figure within the conglomerate: “He continues to be the major and controlling shareholder of Geely Automobile and remains Chairman of Zhejiang Geely Holding, which owns stakes in international car brands such as Volvo and Smart as well,” writes the Handelsblatt. As for Li Shufu’s stake in Mercedes-Benz through his investment firm Tenaciou 3, “this investment is not affected by current events in China,” emphasizes the Automobilwoche.
The domestic perspective is actually more interesting than looking at international involvement. Li Shufu is leaving Geely Auto during unusually tough times, as domestic demand for electric vehicles in China has been declining for months. The market is currently driven by rising exports, which are helping to stabilize it. In the latest quarterly report under Li’s leadership, Geely Auto achieved record sales (+15% year-on-year) and a 26% increase in gross profit, which is positive given the market conditions. Even at Geely, it is primarily current exports that ensure growth.
handelsblatt.com, automobilwoche.de, geelyauto.com.hk (PDF), geelyauto.com.hk (PDF, Annual Report)