Li Shufu personally takes charge of Geely and takes charge of krypton

At the beginning of this year, Li Shufu, chairman of Geely Holding Group, made a ten thousand character speech inside Geely, which is going from paper to reality. Among them, after admitting the failure of the “blue Geely action” plan and throwing out the “two blue Geely actions” plan, the new brand accelerated to land. On March 23, Geely announced the establishment of a new electric vehicle company, krypton, with Li Shufu as its chairman.

It is understood that krypton plans to inject 2 billion yuan in cash to engage in R & D, procurement and sales of electric travel related products and services, including intelligent pure electric vehicles of krypton brand. Geely Automobile announced that the company and Geely Holding Group (including employee investment platform and user rights platform) jointly invested to establish krypton company, in which Geely Automobile holds 51% and Geely Holding Group 49%.

Geely has high hopes for the newly born krypton brand. Geely Automobile said in the announcement that the company and Geely Holding Group jointly set up krypton company, which is more conducive to a high degree of resource integration and scale advantage, and truly build an intelligent technology ecological enterprise.

In the view of Zhang Xiang, an auto industry analyst, the establishment of krypton company with high specifications and the leadership of Li Shufu not only reflects Geely’s attention to krypton, but also reflects Geely’s dissatisfaction with the development of its new energy vehicle sector.

As the sales champion of self owned brand passenger cars, Geely put forward a new energy development strategy called “blue Geely action” in 2015, and planned to achieve more than 90% of the total sales volume of new energy vehicles by 2020. According to the data, the sales volume of Geely’s new energy and electrified vehicles last year was 68100, accounting for only about 5.2% of the total sales volume.

The sales volume of new energy and electrified vehicles failed to meet expectations, which is related to the poor performance of Geely’s geometric brand market. In April 2019, Geely released a new medium and high-end pure electric brand geometry, and the first model geometry a was launched simultaneously. Geely attaches great importance to the geometric brand, not only designs the brand logo alone, but also takes it as a brand that keeps pace with Geely and linker.

However, in 2019, the sales volume of geometry a is about 13000 vehicles. Except for a few months, the monthly sales volume of geometry a has been maintained at the level of 1000 vehicles, which is not good-looking compared with its competitors. Third party data show that last year, geometric car sales were about 10300, a year-on-year decrease of 18.4%.

However, the setback of the “blue Geely action” plan has not reduced Geely’s ambition for new energy vehicles. In February this year, Li Shufu said in an internal speech of Geely: “the failure of the” blue Geely action “plan to complete on schedule is not due to the wrong strategic direction or the failure of strategic implementation, but to the fact that the historical opportunity is not ripe. There are many examples of such failures, so it is not necessary to be frustrated. Today, on the basis of summing up the past, Geely has formed the” two blue Geely actions “plan Plan for the future. “

It is worth mentioning that krypton will play a crucial role in the “two blue Geely operations” plan. According to the relevant responsible person of Geely, the new energy vehicles of Geely and link brands in the future mainly focus on energy saving, plug-in and hybrid, which belongs to the first aspect of the “blue Geely action” plan; geometry and krypton mainly focus on pure electricity, which belongs to the second part of the “blue Geely action” plan.

Beijing Business Daily reporter noted that Geely Automobile said in the announcement that krypton “aims to build an intelligent differentiated electric vehicle brand”. How will krypton brand form a differentiated positioning with geometric brand? In this regard, the relevant responsible person of Geely told Beijing Business Daily that the content of the subsequent press release shall prevail.

Zhang Xiang believes that with the birth of krypton brand, Geely should gradually reduce its investment in geometric brand in the future, and may eventually give up geometric brand directly. At present, the sales volume of the geometric brand has not reached the economic benefits of scale, so Geely does not need to retain the two electric vehicle brands of geometric and krypton at the same time.

Dong Xiang, a financial expert, said that in order to achieve the sales target of Geely in 2021, the performance of the new energy vehicle sector is crucial, and the krypton brand will become an important force for Geely to participate in a new round of fierce competition of domestic new energy vehicles. According to Li Shufu, Geely hopes to actively participate in the competition in the intelligent pure electric vehicle market through this new electric vehicle company and brand.

According to the plan, krypton’s first model, zero, based on the vast structure of sea, will start booking during this year’s Shanghai auto show, and will realize mass production and delivery in the fourth quarter. In the next five years, krypton plans to launch at least one brand new product to the market every year.

Beijing Business News (reporter Liu Yang, Pu Zhenyu)

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