Li Shufu'S Speech: Looking Forward To Geely'S Transformation

Since this year, Geely Holding Group has made many big moves, from holding hands with Baidu, joining hands with Foxconn, and then investing in FF. The outside world is quite puzzled by a series of measures taken by Geely.

On February 20, Li Shufu, chairman of Geely Holding Group, gave a speech within the group with the theme of "being upright and extraordinary, seeking truth from facts". In this internal sharing of ten thousand words, Li Shufu's insight into the international situation, opportunities and challenges of domestic and international dual circulation, cross-border integration of industries, and reform of automobile industry are the reasons for Geely's transformation.

"Some people are worried that Geely will be distracted from its own development, and some experts say they can't understand Geely's strategy. I don't think it's strange that I don't understand. Some strategies are multi-faceted. If everyone is clear at a glance, it is not called a new model. Since it is an innovative idea, it may not be understood by all of us. We are just exploring. However, no matter how complex the situation may be, we must adhere to the principle of strategic prudence and achieve strategic initiative under the strategic framework in which advance can be attacked and retreat can be defended. " Li Shufu said.

Li Shufu mentioned the "three invariants" and "two changes" in the automobile industry. The three unchangeable points are: the automobile is the automobile. No matter how it changes, safety, health and regeneration are the eternal themes; for the automobile industry, both the traditional automobile enterprises and the new automobile enterprises are difficult to cross the basic ability that the automobile industry must possess; the basic law of the automobile industry, the scale effect, will not change, and eventually the global automobile industry enterprises will survive Only large-scale enterprises can survive.

The two changes lie in the following two aspects: one is that the software defines the automobile; the other is that the traditional automobile industry chain is an industrial chain with Mechatronics as its core, while the new automobile industry chain is composed of information, communication technology and mechatronics, forming an ecosystem industrial chain.

This is the reason why Geely chooses to expand further in the period of industrial transformation.

"In the critical period of transformation and transformation, we must understand the strategic importance of connecting the past with the future. We need not only self revolution, but also joint revolution. We must be open and inclusive, joint and horizontal, unite all forces that can be united, create new advantages in the industrial chain, expand new friends in the ecosystem, and fight alone and alone, it is very difficult to win this war. " Li Shufu said.

Re mention blue Geely action plan

In 2015, Geely launched a high-profile "blue Geely action", which was the first among its own brands to announce the transformation to electrification.

In Geely's new energy strategy, it takes into account the three technical routes of hybrid, plug-in hybrid and pure electric vehicles, and develops hydrogen fuel cell vehicles and methanol vehicles at the same time. At that time, Geely's goal was that by 2020, the sales of new energy vehicles would account for more than 90% of Geely's overall sales; among them, the sales of plug-in hybrid and oil electric hybrid vehicles would account for 65%, and pure electric vehicles would account for 35%.

Five years later, Geely's original dream has not come true.

In 2020, the total sales volume of Geely's new energy and electrified vehicles (including EV, HEV, mhev and PHEV) will be 68000, down nearly 40% compared with that in 2019, accounting for only 5.2% of Geely's total sales.

Li Shufu said frankly that although blue Geely's action plan was not completed as scheduled, it is not surprising that this is not a strategic direction error, nor is it a failure of strategic implementation, but that the historical opportunity is not mature and the external strategic conditions have not been formed.

Now, Li Shufu has released a new blue Geely action plan.

The plan consists of two parts. Blue Geely action plan 1: focus on energy saving and new energy vehicles, including hybrid electric vehicles, plug-in hybrid electric vehicles, extended range plug-in hybrid electric vehicles, and small displacement energy-saving vehicles. Among them, 90% are new energy hybrid vehicles, and about 10% are traditional energy-saving small displacement vehicles. Blue Geely action plan 2: focus on pure electric intelligent vehicles, establish a new pure electric vehicle company, and actively participate in the competition in the intelligent pure electric vehicle market.

Some industry insiders familiar with Geely told the 21st century economic report that the new pure electric vehicle company will be built on the basis of sea's vast architecture.

At the Beijing auto show in September 2020, Geely released a new pure electric architecture sea "vast". This is Geely's "ultimate weapon" which took four years and invested 18 billion yuan to build. The vast architecture basically carries all the "wild hope" of this large-scale automobile enterprise in the field of pure electric intelligent vehicles in the future.

According to the official information disclosed by Geely, Geely has not only made a complete and even radical plan in terms of hardware, but also got rid of the design system based on hardware in traditional automobile architecture.

In Geely's business logic, the deep opening of the vast structure is feasible, that is, it is open to other car companies and brands.

An Conghui, President of Geely holdings, told the 21st century economic reporter during last year's Beijing auto show that the vast structure has cooperated with more than seven brands and has developed more than 16 models. According to an Conghui, among the seven brands, there are also brands outside Geely Group. Geely is open in this respect.

In fact, in the era of electrification, it has become possible to share the architecture between automobile enterprises. Previously, Ford announced that it would build a new pure electric vehicle based on Volkswagen's MEB platform. Based on such cooperation, automobile enterprises can reduce the risk of R & D and share the cost, so as to pursue the maximization of interests in the field of electrification.

The vast architecture also wants to be open. However, to a certain extent, Geely's pure electric R & D system strength has not been well proved, and Geely has not yet launched a pure electric vehicle which has achieved market success.

"We should not only shine brilliantly in the field of pure electric intelligent vehicles, but also extensively unite all forces to form a strategic camp, increase strategic coordination, share strategic achievements, and ensure the success of the strategy." Li Shufu said.

Five years later, Li Shufu mentioned the blue Geely action plan again. Although there is no specific time point for the realization of the specific goal, it reflects the determination of the traditional independent leading enterprise to transform.

However, it is not easy for Geely to make a breakthrough in the field of new energy vehicles. In terms of the existing market structure, Geely's geometric brand has not been recognized by the market, and the existing new energy products have not shown its advantages in the fuel era.

How to land a new pure electric company and whether Geely can shine new machines in the field of new energy are the challenges that Geely will face in the future.

Cooperate with technology companies to realize the transformation of traditional automobile enterprises

"The auto industry revolution has begun to" riot ". From theory to practice, from hearsay to reality, from small scale to large scale, from local to overall situation, from edge to central government, this is an ongoing auto industry revolution drama. It is a century old auto revolution drama full of opportunities and challenges, which is very wonderful." Li Shufu said.

In this revolution, traditional automobile companies can ignore it, resist tenaciously, persist in the end, or subvert themselves and win by surprise. We can take part in the revolution passively or initiatively. We can make revolution alone or jointly. We can open up new territory while sticking to the old base area. We can all have our own independent judgment. After all, the industry reform is just beginning. He said.

Geely's strategy is to realize the transformation to a technology company through further expansion and cooperation.

"Whether it's the cooperation with Baidu and Foxconn, or satellite manufacturing, blockchain, etc., Geely's everything is about cars. Geely won't contract for others. Foxconn will produce cars for others. Baidu wants to build intelligent electric vehicles, and Geely is helping Baidu realize his great ideal. " Li Shufu said.

The scale effect of automobile industry has not changed. Geely is trying to further expand its scale through cooperation.

"Baidu, which has set up automatic driving for many years, wants to build a complete vehicle in person. With the blessing of Geely, it can quickly launch products based on Geely's existing platform and using Geely's car building experience. Through this open cooperation, Geely can learn the Internet experience from technology companies and explore new business models. " On February 22, some industry experts told reporters of the 21st century economic report.

Zuo Yan'an, the former chairman of Jianghuai Automobile, believes that the relationship between the Internet and automobile enterprises, as far as China's industrial civilization is concerned, is that "if they are combined, they will both benefit; if they leave, they will all be hurt.". From the perspective of global competition pattern, in China, the combination of Internet and automobile enterprises may be an important way to realize the transition from a big automobile country to a powerful automobile country. The key is the way of cooperation.

Of course, this new model is also a double-edged sword for Geely.

The vast architecture has enough market competitiveness, so that the products based on this platform have competitiveness, which is an important prerequisite for this model. But after the structure is open, how should the core competitiveness of Geely Automobile brand be reflected? There is no doubt that these products based on the same architecture will be competitors of Geely Group's new electric vehicles.

Although Li Shufu said that "Geely will not contract for others", in the future, how Geely evades becoming a "OEM factory" and how to reduce its own brand premium distraction are all problems Geely needs to face.

"The reform of the automobile industry has opened a time window for the adjustment of the automobile industry chain and the expansion of the ecosystem. A new track has begun to be built, and a new marathon has started. There is no end, only the beginning, no way, only direction. " Li Shufu said.

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