Li Shufu, a Chinese billionaire, is reorganizing his automotive company, Geely, after making numerous acquisitions over the past ten years. The goal of this restructuring is to streamline operations and reduce costs due to the challenges posed by certain underperforming brands that require significant investment.
Shufu's strategy is centered around improving synergies and minimizing product overlaps within his diverse portfolio. However, this task is complicated by the presence of entities that are not profitable and burdened with high levels of debt. Balancing the support of weaker assets while maintaining the strength of more profitable divisions is a significant challenge for Shufu and his minority shareholders.