Geely Plans to Use Former GM-SAIC Plant in China to Build Clean Energy Cars

Post by : Saif Nasser

Chinese carmaker Geely Holding Group is planning to take over a factory once used by SAIC Motor and U.S. automaker General Motors in the northeastern Chinese city of Shenyang to make clean energy vehicles. A person familiar with the matter said Geely has been talking with different partners for months to study how to use the plant, but no final decision has been made yet. The plan shows Geely’s interest in reusing existing car factories instead of spending money on building new ones.

The Shenyang factory was earlier owned equally by GM and SAIC and could produce around 500,000 vehicles each year. It used to build popular models such as the Buick GL8 and Chevrolet Tracker for Chinese customers. However, the plant was closed in February this year after GM’s car sales in China dropped sharply. GM once sold around two million vehicles in 2017, but by 2024 that number had fallen to only about 500,000. This decline showed how the American company has lost its strong position in the Chinese market in recent years.

Geely did not comment on the plan, and both GM and SAIC have also not responded to questions about the factory’s future. But people in the industry believe the move could help Geely increase its production capacity quickly and cheaply. The company’s chairman, Eric Li, has already said that the global car industry faces a serious problem of overcapacity, meaning too many factories and not enough demand. By taking over old plants, Geely can avoid adding more pressure to the market and can focus on improving production efficiency.

Geely has used this strategy in other countries as well. The company recently made a deal to use Renault’s plant in Brazil to produce Geely-branded cars for sale in the Latin American market. This allows the company to expand its business worldwide without the high costs of building new factories from the ground up.

Geely’s car sales have been growing strongly this year. In the first nine months of 2025, it sold around 2.95 million vehicles, which is 29% more than the same period last year. The biggest growth came from clean energy cars, including electric, plug-in hybrid, and methanol-powered vehicles, which saw sales rise by 68%. These strong sales have helped Geely gain market share from its main domestic competitor, BYD.

Geely’s brands such as Geely Auto, Zeekr, and Lynk & Co increased their combined market share in China from 7.6% last year to 11% this year. At the same time, BYD’s market share fell slightly from 15.8% to 14.9%. This shows that Geely is becoming a strong competitor in the clean energy vehicle industry and is slowly catching up to the country’s top player.

Geely’s plan to use the Shenyang factory also reflects how China’s auto industry is changing. Many older plants that once made gasoline-powered cars are being turned into factories for electric and hybrid cars. China’s government has been encouraging this shift through its green policies, and more people in the country are now choosing electric cars because of lower running costs and better technology.

If Geely’s plan goes ahead, the Shenyang plant will likely be used for electric or hybrid vehicles, matching the company’s focus on clean energy. This would also help the Chinese carmaker meet growing global demand for environmentally friendly cars. Industry experts say Geely’s decision to reuse a closed factory is a smart move because it saves money, reduces waste, and speeds up production.

In the long term, this strategy could make Geely more competitive at home and abroad. As the world moves toward cleaner and more efficient transport, Geely’s practical approach to reusing resources instead of building from scratch could become an example for other carmakers. The move may also strengthen China’s position as the global center for electric and new energy vehicles.