Geely chairman Li Shufu streamlines his car-making empire

After a decade-long buying spree, Chinese car tycoon Li Shufu has begun streamlining his globe-spanning Geely empire to cut costs.

- BLOOMBERG

Given that his fondness for engineering encompasses both the financial and automotive kinds, minority shareholders may find themselves passengers taken on a rough ride.

His plans to increase synergies and avoid product overlaps are logical. But his brands require significant investment, and several of them are loss-making or have high debts, or both. Nurturing weaker assets without harming stronger ones is a difficult balancing act.

In response to questions, Zhejiang Geely Holding Group said it "remains financially disciplined with a strong balance sheet with a healthy debt ratio", adding that it has "no plans to decrease its existing holdings" and its strategy "will create shareholder value for all investors long term".

Mr Li has come a long way since starting out as a photographer in the early 1980s, before pivoting to making refrigerators, motorbikes and, eventually, cars.

Geely has been cheaply acquiring and patiently fixing Western automotive assets such as Swedish carmaker Volvo Cars and British racing icon Lotus, while incubating new electric brands such as Zeekr and Polestar.