Geely Galaxy is reportedly leveraging a closed facility from a domestic peer to address capacity bottlenecks as the Geely Auto (HKG: 0175) sub-brand experiences robust growth.
Phase three of the former SAIC-GM Beisheng plant in Shenyang, Liaoning province, northeastern China, is undergoing renovation to supplement Geely Galaxy's production capacity, local media outlet LatePost reported today.
A source close to Geely said that discussions on this matter have been ongoing for some time. Another source indicated that Geely had also negotiated with another joint-venture automaker to lease its Shenyang facility for production, but the talks did not conclude successfully.
The Beisheng plant was once one of SAIC-GM's four major production bases in China, responsible for manufacturing gasoline-powered models including the Buick GL8 with an annual capacity exceeding 300,000 vehicles, the report noted.
The facility comprises three phases: phase one was built in 2004, with phase two expansion completed two years later. Phase three was finalized in 2014.
The facility was fully shut down in February this year. An auction notice in late September indicated that the older phase one and phase two buildings would be demolished for real estate development, while the newer phase three plant is undergoing renovation, according to LatePost.
Geely Galaxy was originally launched as a new product lineup on February 23, 2023. On March 3 this year, Geely announced the upgrade of Geely Galaxy into a new brand.
Since October 2024, sales figures for the Geometry lineup have been consolidated under Geely Galaxy.
Geely Galaxy has experienced robust growth this year, selling 127,476 units in October --marking its third consecutive month of record sales, according to data released by Geely on November 1. This represents a 100.77 percent year-on-year increase and a 5.47 percent rise from September.
From January to October, Geely Galaxy sold 1,002,461 vehicles, surpassing its annual sales target of one million units ahead of schedule, with an 186.61 percent year-on-year increase.
Current annual production capacity for Geely Galaxy models approaches one million units, though these facilities are not dedicated exclusively to the brand. As more new models launch, existing capacity is strained, LatePost noted.
Beyond repurposing the Shenyang plant, Geely Holding signed a cooperation agreement with Wuhan Economic Development Zone in Hubei province in September, announcing plans to produce multiple new Geely Galaxy models in Wuhan.
Geely will utilize idle capacity at the Wuhan plant of Lotus Technology -- Geely Holding's majority-owned luxury electric vehicle company -- to produce new Geely Galaxy models through production line modifications, according to LatePost.
In June, Geely Holding chairman Eric Li said at an automotive forum that the global auto industry currently suffers from severe overcapacity, prompting Geely's decision to halt construction of new plants or capacity expansions at existing facilities.
The company would maximize collaborations and resource reorganization, Li said at the time.
