How Chinese carmaker Geely put roots in the U.S.
Politicians on both sides of the aisle want to block Chinese vehicles from entering the United States.
But more than 100 Chinese automakers, auto technology companies and parts suppliers already operate in the United States, according to a study by Dunne Insights, a consulting firm focused on electric vehicles and autonomous markets. Despite the US imposing a 100% tariff on electric vehicles coming from the country and considering a rule banning Chinese-related cars from US roads, several Chinese companies are finding ways to invest in the country.
Chinese giant BYD produces buses in California and has signed a licensing agreement with Chinese battery maker CATL Ford Motor Providing technology and services for a battery manufacturing operation in Michigan.
One particularly well-positioned company is Zhejiang Geely Holding Group. As is widely known, Geely currently has major investments in three automakers doing business in the US. Volvo Cars, pole star And Lotus – and smaller stakes in luxury manufacturers Mercedes-Benz and Aston Martin.
Geely’s advantage
Lotus, Polestar and Volvo all supply Geely Holding dealer networks in the US, said Tu Le, founder of automotive consultancy Sino Auto Insights. This is an important asset.
“Let’s not ignore how important the dealer network and the service infrastructure that needs to support it is, because this is not a trivial task to be solved by automakers that do not have a presence in the United States,” Le said.
Geely also has the potential to own factory capacity in the US thanks to its Volvo stake.
The Volvo factory near Charleston, South Carolina, produces both Volvo and Polestar cars. The facility is large enough to produce about 150,000 vehicles, but only 18,500 in 2025, said Sam Abuelsamid, vice president of market research at Telemetry Insights, based on Marklines data. Volvo said it will add U.S. production of its XC60 hybrid SUV, which will add about 45,000 units per year.
Volvo is looking to expand its footprint in the United States. Volvo imports about 95% of the cars it sells in the United States, Luis Rezende, the company’s president of the Americas, told CNBC in December. The company plans to increase U.S. sales from about 122,000 to about 200,000 units in 2025. Volvo wants 50% to 60% of that growth volume to be U.S.-made, Rezende said.
Volvo CEO Hakan Samuelsson reportedly said late last month that he would be open to using it for a Chinese vehicle. Business Content.
“Putting production there actually lowers costs or amortizes fixed costs over more units,” Le said.
US expansion?
The name Geely may refer to the holding company with stakes in Volvo, Polestar and others, or to automaker Geely Auto, its publicly traded Chinese subsidiary comprising Chinese brands Zeekr, Lynk & Co and the Geely brand.
Analysts say Zeekr, a Chinese brand, is likely to lead expansion in the US. Already, waymo It uses the Zeekr vehicle as a platform for its autonomous fleet in San Francisco. The company continues to use the Jaguar I-Pace and plans to use Hyundai and Toyota cars as well. Waymo declined CNBC’s request for comment.
“Zeekr executives said they wanted to introduce the Zeekr brand to the US market,” Abuelsamid said. he said. “This is the most likely of the Geely Group brands.”
Le said he may be among those in the best position, but he’s not completely alone. Stellantis The company, which owns the Jeep, Ram, Dodge and Chrysler brands, has an approximately 20% stake in the Chinese automaker Leapmotor.
“There is another opportunity to rebrand an existing vehicle like a Fiat or a vehicle that Americans are more familiar with, and there is already an infrastructure in place,” Le said.
Despite fierce bipartisan opposition to Chinese automakers, President Donald Trump has suggested he would be willing to let Chinese automakers build in the United States.
“If they want to come in now and build a factory and hire you and your friends and neighbors, that’s great,” the president said of foreign automakers in a speech to the Detroit Economic Club in January. “I love it. Let China in. Let Japan in. They’re building factories, but they’re using our labor.”
