Geely plant to launch new model

Guorun Geely, the
joint venture between Guorun Holdings of Hong Kong and Geely Group, is to start
production of a new model targeting the low end of the domestic market, as part of its
strategy to introduce a new model each year, South China Morning Post said. Recently
approved by the Chinese authorities, the venture will continue to pro-duce two models
developed by Geely, the Merrie and the Ulion.
Commenting on the 10 per cent price cuts
recently announced by Geely, Guorun's chairman, He Xueehu, said that the group could
absorb the cuts because it enjoyed much lower start-up and production costs than foreign
firms that set up similarly sized ear plants.