Li Shufu Explained

Li Shufu
Native Name:李书福
Birth Date:25 June 1963[1]
Birth Place:Taizhou, Zhejiang, China
Education:Yanshan University
Yearsactive:1986–present
Organization:Chinese People's Political Consultative Conference
Spouse:Wang Li (Chinese: 王丽)[2]
Children:2

Eric Li Shufu[3] (; born 25 June 1963) is a Chinese billionaire entrepreneur. He is the founder and chairman of Geely.

Early life

Li Shufu was born in Taizhou, Zhejiang. He has a master's degree from Yanshan University.

Career

Li founded Geely in November 1986; it is now the second-largest private automobile manufacturer in China.[4]

On 28 March 2010, Geely signed a deal worth US$1.8 billion to buy Swedish automobile manufacturer Volvo Cars from American automobile manufacturer Ford Motor Company.[5] It was the largest foreign purchase by a Chinese car manufacturer. Along with $900m of working capital from Geely and a commitment to build a Volvo factory in China, Li had a target of driving sales to 600,000 by 2015 in the domestic market.[6]

In 2013, Hurun Report ranked Li the 63rd richest person in mainland China, with a net worth of US$2.6 billion.[7]

Li announced in November 2018 that he had entered into an agreement with the China Aerospace Science and Industry Corp. to build a new line of supersonic bullet trains. The plan is for the trains to run using newly developed technology. Li said, "Core technology can't be bought. The more you use others' technology, the more reliant you become. We have to innovate on our own. The journey will be tough but the prospects are promising."[8]

In 2018, according to the Financial Times, Li became Daimler's largest shareholder, with a 9.7% stake in the German automaker.[9]

In March 2020, Li was in talks to merge Volvo with Geely in a move to create a global automaker. Both Volvo and Geely were owned by Li's investment fund Zhejiang Geely Holding Group, but operated as separate entities.[10]

In September 2022, Shufu's group acquired a 7.6% stake in Aston Martin.[11] In May 2023 Geely increased its stake to 17%, becoming the third-largest shareholder.[12]

Political life

Li is a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC).[13] Li served as an independent non-party affiliated delegate to the 13th National People's Congress,[14] as one of the 94 delegates from Zhejiang.[15]

Economic views

Li has criticized the automotive industry joint venture system in China as producing large profits for foreign original equipment manufacturers (OEMs) and Tier 1 suppliers at the expense of innovation, quality, and technology advancement by Chinese automotive OEMs. According to Li, this has led to complacency by domestic automotive OEMs by relying on profits from foreign partners through joint ventures instead of driving their own organisations to hire talent and improve, knowing they would control half of joint ventures run with profitable overseas manufacturers that generate healthy sales. He has previously argued for state-owned automotive manufacturers to partner with privately run companies.[16]

Personal life

Li is married to Wang Li, (Chinese: 王丽)[17] and the family resides in Hangzhou, Zhejiang.[18]

Notes and References

  1. Web site: 沃尔沃李书福专访. People. China. 23 February 2018. 2 May 2021. https://web.archive.org/web/20210502154129/http://auto.people.com.cn/GB/239017/239575/index.html. live.
  2. News: What's in a Name? A Lot If It Links a Billionaire to China's Xi . 17 October 2018 . Bloomberg News . 1 . 29 November 2020 . https://web.archive.org/web/20201129035343/https://www.bloomberg.com/news/articles/2018-10-17/what-s-in-a-name-a-lot-if-it-links-a-billionaire-to-china-s-xi . live .
  3. Web site: Eric Li . Zhejiang Geely Holding Group.
  4. News: Bradsher . Keith . 2010-03-29 . Ford Agrees to Sell Volvo to a Fast-Rising Chinese Company . en-US . . 2023-07-03 . 0362-4331 . 21 April 2017 . https://web.archive.org/web/20170421133942/http://www.nytimes.com/2010/03/29/business/global/29auto.html . live .
  5. News: 28 March 2010 . Volvo sale signed by Geely and Ford . . stm . live . 28 March 2010 . https://web.archive.org/web/20100329053511/http://news.bbc.co.uk/2/hi/business/8591677.stm . 29 March 2010.
  6. News: 5 August 2010 . China's lucky man bags Volvo . . subscription . 2023-07-03 . 0013-0613 . 8 December 2022 . https://web.archive.org/web/20221208000918/https://www.economist.com/business/2010/08/05/chinas-lucky-man-bags-volvo . live .
  7. News: Li Shufu – Hurun report . . 2013 . https://web.archive.org/web/20151231084828/http://www.hurun.net/EN/HuList.aspx . 31 December 2015 . dead.
  8. News: Archer . Joseph . 6 November 2018 . Chinese car billionaire signs deal to build 'supersonic' trains . . live . 9 December 2018 . https://web.archive.org/web/20181209123800/https://www.telegraph.co.uk/technology/2018/11/06/chinese-car-billionaire-signs-deal-build-supersonic-trains/ . 9 December 2018.
  9. News: Clover . Charles . McGee . Patrick . Campbell . Peter . 28 February 2018 . Is Chinese state behind Geely's Daimler swoop? . . live . subscription . 27 March 2018 . https://web.archive.org/web/20180318112014/https://www.ft.com/content/a9fcd724-1bbc-11e8-aaca-4574d7dabfb6 . 18 March 2018.
  10. News: Boston . William . 2020-02-10 . Chinese Auto Tycoon Aims to Merge Volvo and Geely . en-US . . live . subscription . 2020-03-03 . https://web.archive.org/web/20200303121900/https://www.wsj.com/articles/volvo-cars-geely-automobile-mull-merger-and-stockholm-listing-11581338030 . 3 March 2020 . 0099-9660.
  11. News: Hotten . Russell . Geely founder Li Shufu eyes bigger stake in struggling Aston Martin . . en . 2022-10-21 . 0140-0460 . 21 October 2022 . https://web.archive.org/web/20221021094703/https://www.thetimes.co.uk/article/geely-founder-li-shufu-eyes-bigger-stake-in-struggling-aston-martin-9vp25r3xm . live .
  12. Web site: Geely doubles stake in Aston Martin to 17%. 18 May 2023. Financial Times.
  13. Web site: CPPCC members interviewed before annual session . live . https://web.archive.org/web/20230304082034/https://english.news.cn/20230304/f9e1d4b3e60b43f1b60f2714b3f8fcde/c.html . 4 March 2023 . 2023-06-15 . Xinhua.
  14. Web site: 22 May 2020 . Geely Holding Chairman proposes reforms on Chinese automotive taxation and motorcycle regulations at annual legislative meetings . live . https://web.archive.org/web/20211009231713/https://www.automotiveworld.com/news-releases/geely-holding-chairman-proposes-reforms-on-chinese-automotive-taxation-and-motorcycle-regulations-at-annual-legislative-meetings/ . 9 October 2021 . 2020-09-07 . Automotive World.
  15. Web site: 浙江日报 . zjrb.zjol.com.cn . 8 June 2020 . 31 January 2018 . https://web.archive.org/web/20180131081046/http://zjrb.zjol.com.cn/html/2018-01/31/content_3114610.htm?div=-1 . live .
  16. Web site: Sharman . Andy . 2015-03-29 . Geely chairman Li Shufu attacks Beijing strategy on car industry . subscription . 18 February 2019 . . 5 December 2018 . https://web.archive.org/web/20181205003412/https://www.ft.com/content/28d8629e-d498-11e4-9bfe-00144feab7de#comments-anchor . live .
  17. News: 2018-10-18 . China's Geely 'corrects' rumors about presidential family ties . en . . live . 2023-06-15 . https://web.archive.org/web/20210429212155/https://www.reuters.com/article/us-geely-china-politics-idUSKCN1MS077 . 29 April 2021.
  18. Web site: Forbes profile: Li Shufu . live . https://web.archive.org/web/20210324223917/https://www.forbes.com/profile/li-shufu/ . 24 March 2021 . 9 November 2020 . Forbes.

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