Geely chairman denies flunked test rumour

BIZCHINA / Li Shufu

(China Daily)

Updated: 2006-03-07 15:45

Chinese carmaker Geely Automotive Holding denied reports that it delayed

its ambitious plan to sell cars to the US market because it failed to

pass vehicle tests.

"Our plan has not changed yet," said Geely Chairman Li Shufu, who owns 60

per cent of the company.

Li Shufu, Geely Chairman

Geely has only conducted rollover tests so far in the US and has passed

them, said Li. A rollover test is required by the US market to check

vehicle safety.

Over the weekend, a Beijing-based newspaper quoted John Harmer,

vice-president and chief operating officer of Geely-USA Inc, as saying

the company failed to pass US emissions examination due to problems with

Geely's engines.

"The report is groundless. We have not even begun this kind of test

there," Li told China Daily.

But he said it is difficult to predict when Geely's vehicles will be

shipped to the United States, as the company plans to conduct further

market research and make vehicle improvements to suit the market demand.

In January, Geely estimated it would sell 25,000 cars in its first year

in the United States.

Geely aims to raise its exports to two-thirds of its total production by

2015 when his company is expected to produce 2 million cars a year.

By then, Geely's market share in China will be around 10 per cent, said

Li. The company hopes to also capture at least 2 per cent of the markets

outside of China.

In addition to the US market, the company is also conducting market

research in Europe for possible overseas opportunities.

Geely recently began exporting to countries in the Middle East and Africa.

Geely's first overseas assembly plant in Asia is expected to start

operation soon in Malaysia.

Last May, Geely signed a deal with Malaysian manufacturers Information

Gateway Corporation (IGC) to produce Geely vehicles in IGC's plant.

Geely hit a few obstacles before the Malaysian Government agreed to allow

the carmaker to sell a "very small" portion of its vehicles in Malaysia.

The first Geely car to be produced in Malaysia will be the 1.6-litre

Freedom Cruiser.

Two new models, larger than the Freedom Cruiser, will be introduced at

the Malaysian plant later, according to Geely sources.

In Hong Kong, plans to establish an auto development and research centre

and develop a new sedan series are going on smoothly, Li said.

Last year, the Zhejiang-based company, which entered the auto sector in

1997, sold more than 140,000 cars.

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