The essence of a car is four wheels and two sofas

Li Shufu believed the barriers to automobile manufacturing were overly mystified. When applying to the National Development and Reform Commission for an auto production license in 1997, he expressed this simple understanding of the automotive industry — the core of a car is a reliable mechanical structure and comfortable riding experience, not insurmountable technical barriers. This belief gave him the courage to challenge the industry landscape of the time and allowed Geely to enter the market at extremely low cost in its early days.

Source: 李书福多次公开演讲及采访，1997-2001年

Acquisition is buying technology, brand, and talent — not buying control

Li Shufu's acquisition philosophy differs fundamentally from traditional acquirers: he advocates "independent autonomy, collaborative development" — acquired brands maintain independent operations, Geely provides capital and China market resources, and both parties collaborate on technology R&D. After the Volvo acquisition, he explicitly stated he would not interfere with Volvo's brand positioning and engineering decisions; this rare "hands-off" strategy proved to be the key to successful integration.

Source: 吉利收购沃尔沃后系列采访，2010-2015年

Without technology there is no future; technology is the lifeline of a company

Li Shufu started Geely with low-cost imitation in its early days, but he always clearly recognized this path was unsustainable. From 2003 he began large-scale R&D investment, establishing Geely Research Institute, and obtained world-class automotive technology platforms through the Volvo acquisition. He said: "We cannot rely on imitation forever; we must have our own core technology." This belief drove Geely's strategic transformation from price competition to technology competition.

Source: 李书福在博鳌亚洲论坛演讲，2008年；吉利战略转型系列报道

Chinese cars must go global, and global cars must have Chinese strength

Li Shufu was among the earliest entrepreneurs to propose that Chinese cars must internationalize. He believed China's vast manufacturing capacity and engineering talent, combined with global brands and technology, could form a unique competitive advantage. His global layout — Volvo (safety/luxury), Geely (value), Lynk & Co (premium), Zeekr (electric) — embodies the systematic implementation of this globalization strategy.

Source: 李书福历年达沃斯、博鳌演讲；吉利年报2015-2023

Reverse Acquisition Integration Model

After acquiring a stronger entity, do not interfere with the acquired party; achieve win-win through resource complementarity and market synergy rather than forced integration

After Geely acquired Volvo in 2010, Li Shufu explicitly declared "Volvo is Volvo, Geely is Geely," maintaining Volvo's management team and brand positioning independently, with Geely only providing capital and China market channels. Ten years later, Volvo's annual sales grew from 310,000 to 800,000 units and it successfully listed independently, proving the correctness of this integration philosophy.

Policy Barrier Frontal Breakthrough Method

Facing institutional barriers, let facts and products speak, continuously apply and demonstrate capability rather than going around or compromising

Between 1997 and 2001, Li Shufu applied three times to the National Development and Reform Commission for passenger car production licenses, all rejected. He did not give up but first produced under the name "educational vehicles" while continuously improving products and demonstrating Geely's manufacturing capabilities. After China joined the WTO in 2001, the policy relaxation combined with Geely's existing manufacturing track record finally obtained formal production qualification.

Platform-Based Technology Architecture Strategy

Build shared technology platforms to let multiple brands share R&D costs while maintaining differentiated positioning for each brand

The CMA (Compact Modular Architecture) platform jointly developed by Geely and Volvo simultaneously supports multiple models including the Volvo XC40, Geely Xingyue, and Lynk & Co series, achieving the downward diffusion of luxury brand technology to mainstream brands, significantly reducing R&D amortization costs while improving Geely brand's technological content.

Grassroots Entrepreneurship and Diversification Exploration Phase (1986-1996)

1986-1996

From photo studio to refrigerator parts to motorcycles, accumulating initial capital and manufacturing experience

Started a photo studio with 500 yuan in 1986, then transitioned to producing refrigerator parts, entered the motorcycle industry in 1994 and established Geely Motorcycle Company. Success in the motorcycle business allowed him to accumulate sufficient capital and manufacturing experience, and showed him the enormous opportunity in the automobile industry. This phase laid the foundation for his simple understanding of manufacturing's essence.

Auto Industry Entry Breakthrough and Low-Price Entry Phase (1997-2005)

1997-2005

Break through policy barriers, enter the passenger car market at extremely low prices, establish basic manufacturing capabilities

Began attempting to enter the automobile industry in 1997, experiencing multiple policy rejections. Obtained passenger car production qualification in 2001, launched low-price models like Geely Haoqing at 30,000-50,000 yuan to enter the market. During this phase Geely was positioned as "China's cheapest car"; though quality was widely questioned, it successfully established manufacturing foundations and market presence.

Strategic Transformation and Technology Upgrade Phase (2006-2009)

2006-2009

Shift from price competition to technology competition, build R&D system, prepare for international M&A

In 2006 Li Shufu announced Geely's strategic transformation, upgrading from "making good cars ordinary people can afford" to "making the safest, most environmentally friendly, most fuel-efficient cars." Large-scale R&D investment, establishment of Geely Automotive Research Institute, introduction of overseas engineers, while beginning to research overseas acquisition targets. This phase was the critical window for Geely's transformation from a low-end manufacturer to a technology company.

Volvo Acquisition and Global Integration Phase (2010-2018)

2010-2018

Complete Volvo acquisition, implement independent autonomy collaborative development strategy, build multi-brand global landscape

Completed the acquisition of Volvo for .8 billion in 2010, China's largest overseas acquisition in the auto industry. Subsequently maintained Volvo's independent operation with the integration philosophy of "Volvo is Volvo, Geely is Geely," while establishing a Geely-Volvo joint R&D mechanism. Launched the Lynk & Co brand in 2017, became Daimler's largest shareholder in 2017, with the global automotive ecosystem taking initial shape.

New Energy Transformation and Ecosystem Building Phase (2019-present)

2019-present

Comprehensive new energy transformation, launch Zeekr and other electric brands, build intelligent automotive ecosystem

Launched Zeekr pure electric luxury brand in 2021, Zeekr listed in the US in 2023. Also acquired partial equity in Aston Martin in 2022. Geely Holding's brands cover Zeekr, Lynk & Co, Volvo, Geely, Geometry, Polestar, and others, forming a complete product matrix from luxury to affordable, from combustion to pure electric. Li Shufu simultaneously laid out flying cars (Terrafugia) and satellite internet (Geely Satellite), demonstrating systematic planning for the future mobility ecosystem.