The Geely group plans to absorb another brand

The Geely group plans to absorb another brand

FineAuto

Chinese Geely is considering buying one of its competitors – company Lifan – learned to Reuters. This step can save it from bankruptcy.

According to sources, the Agency, Geely plans to acquire a controlling stake in Lifan and invest in the restoration of the brand. Thus, the Lifan will be included in the list controlled by the Geely companies, including Volvo, Lotus, Polestar, Lynk&Co and Smart – the latest Chinese company also owns half of Daimler.

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As for financial problems, Lifan, currently in the courts of China are considered some 400 lawsuits from creditors demanding collecting from the company of three billion yuan. Lifan is just one step away from ruin. One reason was a sharp drop in sales of new cars in China – demand collapsed 10 times.

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