The smoke of the great battle is spreading, the competition in the auto market is becoming increasingly fierce, and the industry is entering a period of deep reshuffle.

Li Shufu, a "master" of car manufacturing, recently announced that Geely has fired the first shot in the elimination round of the automotive industry with a series of major moves.

1. Geometry merged into Geely Galaxy

As times change, consumers' impressions of traditional gasoline-powered commuting cars like the Honda Fit are getting worse and worse: small space, low configuration, weak power, and high premium.

The emergence of domestic pure electric cars has changed all that. Wuling Hongguang MINI EV ushered in the golden age of pure electric commuting cars, leading commuting cars into the era of new energy.

And with the launch of the new Geely Xingyuan on October 9th, the commuting car market will undergo another major transformation.

Large space, leading smart configuration in its class, rear-wheel drive + multi-link independent suspension, ultra-high cost-effectiveness... These advantages make Geely Xingyuan expected to reshape the market structure of commuting cars.

Of course, this is not the focus of this article. The highlight of the Xingyuan launch event was the appearance of Gan Jiayue, CEO of Geely Auto Group.

At that time, the media was amazed, because the launch of an A0-class car should not have bothered such a heavyweight executive to appear in person, and there must be something more to it behind the scenes.

Sure enough, Gan Jiayue announced big news on the spot: the Geometry series was officially merged into Galaxy, and "GEOME" will become Galaxy's smart premium compact car series.

In the future, Galaxy will focus on the mainstream new energy market, with a product matrix covering A0 to C-class vehicles, including sedans, SUVs, MPVs, and other new energy forms.

2. Li Shufu, a master of car manufacturing

In fact, the merger of the Geometry series into Geely Galaxy at the Xingyuan launch event can be seen as a major strategic step for Geely Group after Li Shufu released the "Taizhou Declaration."

On the 20th of last month, Li Shufu, on behalf of Geely Holding Group, personally released the highly anticipated "Taizhou Declaration," announcing that

Geely will shift from its previous expansion strategy to a more focused approach of integration and steady growth, with strategic priorities on strategic focus, deep integration, efficient collaboration, steady development, and talent-driven enterprise growth.

This represents another major strategic adjustment for Geely since the "Ningbo Declaration" in 2007.

Last year, when Li Shufu test-drove the Geely Galaxy E8, he said, "We are masters of car manufacturing," and he had the confidence and backing to say it.

Back in 1997, Li Shufu led Geely into the automotive industry, becoming one of the earliest pioneers among independent brands.

In 2010, Li Shufu overcame numerous obstacles and Geely acquired Volvo in a "snake swallowing an elephant" deal. This was seen as a brilliant move that not only solidified Geely's position as the domestic sales champion but also accelerated its globalization.

In 2015, Li Shufu proposed the "Blue Geely Plan," pioneering the transition to new energy, and later using Zeekr, Galaxy, and other brands to position Geely as a leading player in the new energy sector.

Therefore, we should attach great importance to every step taken by Li Shufu as he leads Geely forward.

3. Firing the first shot in the elimination round

Some media have pointed out that over the past 20+ years, Geely Group and China's leading independent automakers have largely been in an expansion phase.

Accompanying the large-scale growth in sales is inevitably the expansion of R&D, markets, and brands, as well as the inevitable expansion of debt and persistently high debt ratios.

For example, the debt ratio of some leading automakers has exceeded 77%, causing widespread concern and even comparisons to Evergrande, which has already collapsed.

In recent years, Geely's asset-liability ratio has stabilized at around 50%, which is relatively healthy and forms a stark contrast to the aforementioned automakers.

Of course, nothing is perfect, and Geely has its own troubles.

As a highly complex diversified group, Geely Group's business encompasses not only the entire vehicle but also the upstream and downstream automotive industry chain, education, digital technology, aerospace, and more.

It has as many as 9 listed companies under its umbrella: Geely Auto, Qianjiang Motorcycle, Hanma Technology, Lifan Technology, Volvo, Polestar, Ecarx, Lotus, and Zeekr.

In terms of automotive business alone, Geely has more than a dozen automotive sub-brands spanning gasoline, electric, and alcohol-fueled hydrogen ecosystems, covering a wide range of styles and positioning from luxury to high, medium, and low-end products.

In the rapid development stage of the industry, a complex brand matrix and multi-level product layout are undoubtedly conducive to Geely's share of the market.

However, if coordination and communication are not handled well, there is inevitably the potential for internal friction and resource waste.

As domestic competition intensifies and the path to going abroad becomes narrower, strategic adjustments need to be made to avoid internal friction, concentrate advantageous resources, and make breakthroughs in key areas.

The merger of Geometry into Galaxy can be seen as a strategic adjustment by Li Shufu to strengthen focus and purify Geely.

Years ago, Li Shufu predicted that there may only be two or three domestic automotive brands left in the future.

Geely's current proactive integration and purification, to some extent, means that "master" Li Shufu has officially fired the first shot in the industry's elimination round.