Geely Will Save Lifan From Bankruptcy. They Are Competitors

2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-05-21 02:36

The Chinese concern Geely is going to acquire a competitor-compatriot - the company Lifan, which is experiencing great financial problems. This is reported by Reuters, citing its own sources.

• Geely's management intends to become the main shareholder of Lifan and invest in the recovery of the company. It is not yet known what place it will occupy in the hierarchy of the concern. Geely owns Volvo, Lotus, Polestar, Lynk & Co and half of the Smart joint venture.
• Lifan, which has been the most popular brand from China on the Russian market for several years in a row, stopped car production in the fall of 2019 due to a sharp drop in demand and financial problems. At the same time, she sold one of the two Chinese factories.
• In June 2019, Lifan's debts amounted to 31 billion yuan, with a total asset value of 41.5 billion yuan. The company's cash balance is 370 million yuan, up from 3.1 billion yuan at the end of 2017.
• Now Lifan is engaged in the production of motor vehicles: its company has been producing it since 1992. In 2005, when the brand became the largest Chinese motorcycle manufacturer, it additionally began assembling cars.