GEELY VS. VW: Who’s Playing the Long Game?

This is a tale of two automakers — Zhejiang Geely Holding Group (Geely) in China and German giant Volkswagen AG (VW).

“Are Chinese automakers ahead of us?” is a question asked and answered. OEMs in the West are now struggling to keep up with China, rather than fending off the Chinese upstart. Even if you didn’t attend the recent Shanghai Auto Show, you already knew that the epicenter of automotive innovation is no longer Detroit, Munich, Wolfsburg, or Toyota City.

We picked Geely and VW for an apple-to-apple comparison of their diverging paths to survive the competitive global automotive market.

“China speed” is an often-cited reason for China’s remarkable recent advances in the automotive world.

In response, Volkswagen is making a hard pivot to a “China for China” strategy. When the German group recently unveiled at Shanghai Auto the first of five VW and Audi models, the banner above the stage read “China Speed.”

Beyond “speed,” VW must rethink the “framing” of its business.

While VW was busy defending its turf, Geely reimagined itself as a tech company with building blocks tailored to the automotive sector . . .

Please read my full analysis on Geely vs. VW posted on Yole Group’s website.