Geely shifts to shared factories as auto overcapacity grows

[BobaMilk]

Geely’s chairman says the auto industry already has too many factories, so instead of building new plants the company plans to use existing ones.

Geely will stop building factories and use Volvo's plants instead

This image shows Geely’s shift from building new car factories to using existing ones instead.

BobaMilk

[Quelly]

Using idle capacity beats pouring cash into new plants, but the hard part is platform commonality because shared factories only stay cheap if the models fit the line without constant retooling.

Quelly