Geely Holding Group plans to produce clean energy vehicles at the former SAIC-GM plant located in Shenyang, China.
Although it was built with a capacity of 500,000 vehicles annually, the plant was closed after GM sales fell in China.
This reflects Geely’s strategy in expanding its clean energy lineup by reusing existing manufacturing capacity.
While automakers race to replace traditional internal combustion engine cars with clean-energy ones, the Chinese automotive sector now stands at an unprecedented juncture in its transformation. It is against this backdrop that Geely Holding Group has emerged as one of the country’s most ambitious and adaptive players.
The strategic use of the old SAIC-GM plant in Shenyang allows for increased output of clean energy without the heavy cost of establishing a new factory. This facility used to be a pivotal place in northeastern China for GM before it was closed down earlier this year. Poor sales of models from Chevrolet, Buick, and Cadillac saw the biggest American car manufacturer continue to lose its ground in the China market throughout the past decade, which has seen sales decline from a peak of 2 million units in 2017 to about 500,000 vehicles in 2024.
On the other hand, Geely embraced the dynamics in consumer preference for electric and hybrid vehicles. The company has also developed a diversified portfolio comprising a range of clean energy products under different brands: Zeekr, Lynk & Co., and Geometry. The targeted segments are from the entry-level city car up to luxury electric sedans, hence positioning Geely in various tiers of competition. The decision to revive the Shenyang plant also demonstrates Geely’s commitment to efficient resource usage. By reactivating an already existing facility, it has not only reduced capital expenditure but also helped mitigate the growing problem of industrial overcapacity faced by many Chinese automakers today, since demand for electric vehicles is increasingly volatile. As a matter of fact, Geely’s expansion does not stop at the borders of China: this week, it concluded an agreement with Renault to produce Geely-branded cars from the latter’s factory in Brazil.
This latest development marks a big moment in Geely’s global reach-out, as it ramps up its presence in emerging markets, leveraging underused production assets in the process. These latest initiatives reflect Geely’s wider ambition of global leadership within sustainable mobility. In a world where competition is heating up and countries around the world are demanding more clean-energy vehicles, the group is well-positioned for the next phase of the automotive revolution via its strategy of adaptable growth, cost control, and strategic partnerships. With the Shenyang project, Geely further extends its clean energy footprint and at the same time serves as a role model of how established automobile manufacturers could balance innovation and practicability in a world marked by transformation and environmental responsibility.
