Geely’s Strategic US Entry: How Volvo, Zeekr, and Lotus Could Pave the Way for Chinese Automakers

Geely’s presence in the United States is already significant, though often overlooked. Through its ownership stakes in Volvo, Polestar, and Lotus, the Chinese automaker has established a network of brands, factories, and dealerships that could serve as a springboard for broader market penetration.

Geely’s Existing US Footprint: Volvo, Polestar, and Lotus

Geely’s influence in America is most visible through its majority ownership of Volvo Cars. According to CNBC, Zhejiang Geely Holding Group holds an 80% controlling stake in Volvo, giving it substantial control over the Swedish automaker’s operations.

Volvo operates a manufacturing plant near Charleston, South Carolina, with a total annual production capacity of 150,000 vehicles. Currently, the factory operates at less than 20% of its capacity, leaving room for potential expansion. While Volvo’s immediate focus is on increasing its US-market presence, the CEO Hakan Samuelsson has not ruled out the possibility of producing Chinese vehicles at the plant in the future, as reported by CNBC.

The Volvo brand also brings a well-established dealer and service center network across the United States, which could be leveraged for future Geely model sales. Similarly, Polestar, Volvo’s electric performance brand, has a growing presence in the US market, further strengthening Geely’s infrastructure.

Though a niche player, Lotus—another Geely-owned brand—operates over 40 sales and service centers in the US. These locations could also serve as potential entry points for Geely’s other brands.

Zeekr: The Most Likely Path for Geely’s US Entry

Geely Auto, the automaker’s primary division, includes two additional brands: Zeekr and Lynk & Co. Industry analysts widely regard Zeekr as the most probable route for Geely’s expansion into the US market.

Zeekr positions itself as a luxury electric vehicle brand and has already made limited inroads in the United States. In a notable example, Waymo has begun using Zeekr’s autonomous Ojai vehicles as taxis in the US. Beyond America, Zeekr has a presence in Western Europe, Australia, and Asia, where it offers a range of luxury electric cars, SUVs, and MPVs that could appeal to American consumers.

Industry Experts and Competitive Pressures

Ford CEO Jim Farley has publicly acknowledged the competitive threat posed by Chinese EV technology, stating that Chinese EVs are “far superior” to Western automakers in terms of technology, quality, and cost. Despite this recognition, Farley has expressed resolve to keep Chinese EVs out of the US market due to the perceived threat.

However, the competitive landscape is evolving. Chinese automakers like BYD and battery giant CATL have already established a presence in the US, albeit in indirect ways. Geely’s strategic use of its existing brands and infrastructure suggests it could be next in line to make a more direct entry.

Potential Challenges and Opportunities

Despite bipartisan support for restricting Chinese automakers in the US, political sentiment may shift. Former President Donald Trump has previously indicated openness to welcoming Chinese manufacturers to set up operations in the United States, provided they contribute to domestic manufacturing and job creation.

With Geely’s existing US-based assets—including Volvo’s underutilized factory, Polestar’s dealer network, and Lotus’s service centers—the groundwork for a US entry is already in place. The question now is which brand will serve as the Trojan horse for Geely’s broader ambitions in America.