by Chinese auto giant Geely is already closer to the US market than it seems
Today, it is increasingly difficult to ignore the fact that China produces genuinely high-quality technology. Ford CEO Jim Farley, as is known, drove a Chinese electric vehicle for six months and admitted that Chinese technology, quality, and costs are “far better” than Western ones. He also decided not to let them into the US market due to the enormous competitive threat they pose.
However, not seeing major Chinese auto brands in dealer showrooms does not mean they are entirely absent from the US. If you dig deeper, you can find that BYD, CATL, and others have already established a foothold in the market in some way. This also applies to Geely, which owns stakes in Volvo, Polestar, and Lotus, as well as smaller stakes in Mercedes-Benz and Aston Martin.
Deep ownership roots
Let’s start with America’s favorite Swedish-style automaker — Volvo. Zhejiang Geely Holding Group (the company’s full name) owns a controlling stake in Volvo Cars, approximately 80%, reports CNBC. Volvo has a factory in the US, near Charleston, South Carolina. This gives the company potential US manufacturing capacity for local production if needed in the future, especially given that the Charleston plant is currently operating at less than 20% of its total capacity of 150,000 vehicles per year.
Of course, Volvo first wants to increase its presence in the US market, but producing Chinese cars at this plant is not ruled out, according to Volvo CEO Hakan Samuelsson, as reported by CNBC. Nor should we forget the extensive dealer and service network of Volvo and Polestar across the country, which could also serve as useful infrastructure for a potential Geely market entry.
Next — Lotus. Although it is a niche rather than a mass-market brand, it has over 40 sales and service centers in the US. These could also be used to sell Geely models in the future.
Zeekr on the horizon?
The Geely holding company also owns Geely Auto, which, in addition to selling cars under its own brand, owns two other brands: Zeekr and Lynk & Co. Analysts agree that Geely’s most likely new entry into the US market would be through Zeekr.
Zeekr positions itself as a luxury brand and is already present in the US, albeit on a small scale: Waymo recently began using its Ojai autonomous vehicles as taxis. Outside the US, Zeekr is already present in Western Europe, Australia, and Asia, where it offers a lineup of luxury EVs, SUVs, and even minivans that could appeal to American buyers.
And despite bipartisan support for restricting the entry of Chinese cars into the US, President Trump has previously stated that he would welcome Chinese manufacturers opening production in the US, provided they hire American workers.
Thus, Geely already has significant infrastructure in the US through its subsidiaries, making it much closer to a full-fledged entry into the American market than it seems at first glance. Utilizing Volvo’s production capacity in Charleston and the dealer networks of Volvo, Polestar, and Lotus could be a key factor for launching the Zeekr brand, which experts believe has the greatest potential for success in the US. Political barriers remain a serious challenge, but the Trump administration’s willingness to cooperate provided jobs are created opens a window of opportunity. Waymo’s success in using Zeekr as a taxi already demonstrates that the brand can adapt to American conditions, and it is only a matter of time before Geely takes the next step.
