During the fourth annual Global Auto Forum (GAF) held in Wuhan, China, Li Shufu, Chairman of both Zhejiang Geely Holding Group Co., Ltd and Volvo Group spoke about the reported problems within the Group.
In 2010, Geely offered $1.8 billion to purchase Volvo from Ford. Geely’s move to take over Volvo was the biggest foreign acquisition by a Chinese car manufacturer, and is being watched closely by industry observers to see whether such large cross-border deals will become commonplace in the future development of China’s auto industry.
During his GAF remarks, Chairman Li mostly talked about their Swedish prodigy, Volvo. This is mainly due to the fact that since the purchase, there has been a great deal of speculation about how the take-over process affected the companies. According to rumors and official stances, Geely has been taking a hands-off approach, confirmed now by Chairman Li’s comments. Li emphasized that Volvo and Geely are separate companies, Geely’s cars are of general use, while Volvo is a luxury brand.
“Geely and Volvo are brothers, not father and son,” said Li.
That has not prevented Chairman Li from using his influence to help Volvo into the China market. A new Volvo manufacturing facility in Chengdu is almost ready,while a second assembly factory in Daqing in the far north of China in Heilongjiang Province is scheduled to start vehicle production late 2014.