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China’s Geely Automobile Faces Toughest Year Due to Coronavirus

China’s Geely Automobile Holdings stated Monday 2020 could also be one of its hardest years but, as stress stemming from the coronavirus pandemic on manufacturing and sales persists.

China’s Geely Automobile Faces Toughest Year Due to Coronavirus

However, it said it planned to go ahead with international expansion, regardless of lower sales and net profit last year, when the nation’s auto market suffered a slump, even prior to the novel coronavirus led to lockdowns that have paralyzed economic activity and disrupted supply networks.

Geely Automobile, stationed in the eastern province of Zhejiang, is China’s most globally high-profile auto manufacturer following investments by parent firm Zhejiang Geely Holding Group in European producers Volvo Car and Daimler.

The revenue declared Monday of 8.19 billion yuan ($1.15 billion) was lower than the 9.14 billion yuan average estimated by 33 analysts on Refinitiv.

Geely Automobile, which plans to launch six new models under the Geely, Lynk&Co and Geometry marques this year, sold 1.36 million automobiles last year. It’s maintaining a sales target of 1.41 million vehicles in 2020.

The headwinds are likely to continue in the near future, making 2020 probably one of the most troublesome years in the group’s 23-year history, Geely stated.

Income dropped by 9% from the previous year to 97.40 billion yuan. Analysts had forecast 99.43 billion yuan.

Geely Automobile’s chief An Conghui told on a conference call the corporate plans to start selling Lynk&Co in Europe at the end of this year and share more models with Malaysian auto manufacturer Proton, in which it has a holding.

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