A Financial Strategy Case Study On Geely Auto

Nowadays,the overall growth rate of the auto industry has slowed down,and competition is increasingly fierce.In many cities,policies have limited the growth of traditional car sales.The government’s support for new energy vehicles has spared intensified competition.On the other hand,the prosperity of urbanization and the upgrading of consumption structure have also brought a series of new opportunities.In recent years,with the improvement of research and development capabilities,domestic auto brands have continued to increase.In order to address those challenges,auto companies need to think about formulating which kind of corporate strategy.At the same time,ones should form matching financial strategy.Constituted of four dimensions in investing,fund-raising,operating,and distributing dividend,financial strategy effectively support corporate strategy.As a national brand,Geely Auto adheres to the corporate strategy in M&A and research Investment.Carrying out sound financial strategy,the company has achieved a rapid growth.This article takes Geely Auto as an example.Firstly,it elaborates on the overall China’s auto industry environment and basic conditions of Geely Auto.The growth rate of the automobile industry is slowing down.The joint venture model still occupies the mainstream,while the competitiveness of independent brands is increasing.Geely auto is in the growth period of the enterprise life cycle and adopts an expansive financial strategy.Secondly,it studies the financial strategy of Geely Auto.It mainly evaluates investing,fund-raising and distributing dividend.Then,it studies the effect of financial strategy,the financial status of the company in related financial indicators.In terms of investment strategy,Geely auto adheres to m&a and single-minded investment,finally realizing the improvement of brand value.In terms of fund-raising strategy,through diversified financing channels,Geely auto has provided support to the investment strategy and reduced the overall financing cost.In terms of dividend distribution policy,fixed ratio policy has improved market recognition.This article tries to provide suggestions for the improvement of Geely Auto’s financial strategy.It summarizes the successful experience of financial strategy,and provides some experience and inspiration for other automobile companies in China.