Geely signals a new development path for diversified auto groups

Chinese company Zhejiang Geely has become of one of major global auto companies in recent years, partly through in-house development  of new businesses and brands, and partly through acquisition, or stake-building in established brands. Unlike the Volkswagen Group which has grown partly on the back of acquiring numerous brands in which it has retained 100% or near 100% stakes in its acquisitions, Geely has chosen to acquire and/or retain only sufficient stakes to give it effective control. In a number of cases it has raised funds for further in-house expansion or launching acquisitions through a series of IPOs which have allowed it to realise value in these operations and aid further investment.