Li Shufu: Geely to increase added value

Home >> Auto >> Automakers in China >> Geely

Li Shufu: Geely to increase added value

Source: globaltimes.cn
[15:09 February 18 2011]
Comments

Geely will increase product added values in the strategic transmission, according to Li Shufu, chairman of Zhejiang Geely Holding Group. 　

The low salary era is set to end, Li said. He believes that the competition between enterprises is actually the competition of added value. Only by increasing added value, R&D investment, equipment investment, talent education and recruitment investment, and so on, a company can develop into a strong enterprise.

Li Shufu also stressed the importance of changing of competitors as the final goal of strategic transmission is the transmission of competitors. Although currently Geely's main competitors are domestic automakers such as Chery, BYD, and Great Wall, the company aims to compete with world famous carmaker like Volkswagen, Toyota, Honda, Hyundai, etc.

Li expressed his confidence in an upsurge of the salary after the successful transmission. Geely's products are now priced between 40,000 yuan ($6,082.84) to 150,000 yuan ($22,810.67). However, the added value of a product of Toyota is between 20,000 yuan ($3,041.41) and 200,000 yuan ($30,414.11). By finishing the strategic transmission and increasing added value, it's certain that profit and salary of employees will rise.