Just three months after becoming the owner of Volvo, Li Shufu, president Geely, said that he disagrees with Volvo”s management about its product plans. He told a group in Shanghai last week that Volvo should develop larger cars for China. Volvo prefers smaller cars, for environmental reasons.
Li also said that he disagrees with the brand positioning of Volvo; he wants Volvo to compete with the likes of BMW and Mercedes. Li also said that he will maintain open communication and respect Volvo”s opinion on positioning. “Why? Because they have brought Volvo to where it is today,” he said, “So, they must have good reasons (for sticking to their position).”
Volvo is currently a minor niche brand in China, selling 22,700 units in the first 9 months of this year. Li plans to expand through the building of two assembly plants and the expansion of a third in China.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)