Chinese Carmaker Geely To Enter US Market Plans To Topple Lexus And Telsa With New Luxury Brand

Chinese carmaker Geely is planning to attack one of the most profitable segments of the car business, using a strategy pioneered by Toyota, and taking cues from low-cost fashion brands, people familiar with the strategy told me. Executives of the world’s largest carmakers, and of one of the smallest, California’s Tesla, will monitor the plans with great interest.

According to a reliable source close to Geely’s headquarters in Hangzhou, China, the carmaker will soon launch an “affordable premium” brand, with cars initially available in the U.S. and Europe. “This will be Geely’s global brand,” the executive said, “it will be all plug-in hybrid and hybrid electric vehicles, and we’ll sell it Tesla-style using our factory in Taizhou.”

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cidflekken - 10/6/2016 2:03:36 PM

+4 Boost

What do you drive? A "Gheely". Ew.

ilovecar2015 - 10/6/2016 2:05:27 PM

+6 Boost

Genesis is struggling big time, what make China (Geely) thinks they can penetrate in U.S premium market?

Agent009 - 10/6/2016 4:27:07 PM

+1 Boost

Genesis will struggle until a SUV and a crossover is in the mix.

Two higher end sedans wont cut it for long

MDarringer - 10/6/2016 7:30:18 PM

-2 Boost

Genesis is not struggling. Their sales are meeting projection.

cidflekken - 10/7/2016 4:27:38 PM

+1 Boost

Not a true comparison. 1211 Genesis G80 sales need to be considered, in addition to any leftover Hyundai Genesis sedan sales in the 845 figure, which is probably most of it since the Genesis coupe sell in small numbers. So, combined, we're still probably talking about 2000 Genesis/G80 sales.

Agent009 - 10/6/2016 4:25:46 PM

-1 Boost

Every dog has his day, but Lexus finally has stepped up to the plate and changed the riding on the coat tails approach.

They actually make several models that stand on their own merits against the Germans.

TheSteve - 10/6/2016 3:39:33 PM

+1 Boost

My (possibly incorrect) understanding is that China is a solid producer of premium products, providing "foreigners" design the product and oversee the quality standards. Examples include Apple's iPhones (designed in the US but all made in China) and some Denon AV components.

However, left to their own devices, we have seen knock-off models that are designed to look like they ride the coat-tails of well established and respected brands (such as Land Rover), while being shoddily designed and constructed. China will have to get beyond this to become a car manufacturer that can compete against Honda or Toyota, let alone "Lexus and Tesla with [a] new luxury brand."

TomM - 10/6/2016 6:51:47 PM

+3 Boost

The obvious problem is that true "Premium" brands have a "cachet" that people want for them to spend for premium cars - and a Chinese car - no matter how well it is made - will have NO MORE luck than a Korean company has - even though their cars are also substantially lower in final price with their supposed competition.

Add in that they will be "Hybrids" (whatever that means) - which right now with the price of gas so historically low - that Hybrids are now splitting up their share of the market into smaller bits. Hybrids simply do not sell in great numbers in the premium segment either.

And one more think against -would be that "premium" cars in China tend towards the LUXURY end of the segment - more so than any German car does. But in Europe - even though Mercedes has added more Luxury to its models - they are still all around drivers cars - something Chinese car are NOT. And Hybrids are also usually not drivers cars either. However - stating what TESLA owners want is also a non-issue - there are not a lot of Tesla owners to begin with.

While Gheely has the money and government support to actually spend some amount of time entering the markets around the world - far more so than Tesla - they would be better off BUYING a premium brand (Maybe Jaguar for instance) than trying to start a new one. In fact - they might be a better choice for replacing the Chrysler small cars being discontinued. Chrysler was once a Buick Competitor.

rockreid - 10/6/2016 5:43:46 PM

+2 Boost

Ummm.. these are Hybrid cars according to the article. Tesla buyers have made it abundantly clear they do not want hybrid. They want full-electric. Yet another "Tesla is doomed" article from the most anti-Tesla forum in the US.

MDarringer - 10/6/2016 7:31:02 PM

0 Boost

The real question is why not just use Volvo. That is Geely's premium brand. If anything Geely should target Hyundai.

dumpsty - 10/7/2016 11:25:43 AM

+2 Boost

Volvo is upscale not luxury.

Geely just needs to provide a "relatable" brand design for its initial vehicles...which I hope are mid-size car & SUV. They've done well with Volvo, now they'll have to step-it-up at least to Genesis/Infiniti level. Good luck.

SanJoseDriver - 10/7/2016 1:07:31 PM

-2 Boost

The more the merrier, but they'll have to sell at a pretty steep discount to sway buyers from other brands. Unless they are full-electric there won't be much overlap with Tesla. I like that they are cutting out the middleman and selling direct.

w222 - 10/7/2016 1:35:05 PM

+2 Boost

Obviously no one has heard of the brand outside of China, so their reputation will take time to establish.
I'm not going to judge until people have a opportunity to review the actual production cars.
More competition is always good for consumers. Even if they don't deliver what they promise, their presence will force other auto makers to react accordingly.