SHANGHAI, March 27 (Reuters) - China's Geely Group
is merging three existing units employing nearly
2,000 engineers to develop digital cockpit systems into a single
unified team, said a source with direct knowledge of the
situation.
The merger marks the carmaker's latest move to
streamline its workforce and improve efficiency.
Geely will integrate digital cockpit teams and investments
from the Zeekr, Lynk & Co and Geely brands,
which have until now developed cockpit systems independently,the
person said. In the past few months it has moved to integrate
its smart driving R&D teams.
It was not immediately known how many employees might lose
their jobs as part of the consolidation, which aims to reduce
both costs and redundancies, the source said.
"Geely is optimizing internal resources to enhance
synergies in technology and R&D across our brands, with no plans
for redundancies," Geely said in a statement to Reuters on
Thursday.
Smart cockpit systems are a key selling point for Chinese
automakers looking to woo consumers in the hyper competitive
domestic market as they enhance the driving experience with
features such as voice recognition and navigation maps.
Alongside its in-house teams, Geely also buys technology for
its smart cockpit systems from Ecarx ( ECX ) and smartphone
maker Meizu, which are both backed by Geely founder Li Shufu.
Geely and its affiliated brands contribute 70% of Ecarx's ( ECX )
revenue, its CEO has said.
The Chinese automaker, which aims to sell more than 5
million vehicles annually by 2027, has been restructuring its
sprawling brands into two units - Geely Auto and Zeekr Group -
targeting the mass market and premium segments respectively.
Geely has accelerated the adoption of smart driving
technologies on its vehicle brands over the past two months
after consolidating several engineering teams employing
thousands of people and partnering with artificial intelligence
company Qianli Technology.
Zeekr said in March it would start deliveries of its first
EV model equipped with technology that will allow drivers to
take their hands off the steering wheel in the second half of
2025.