Volvo’s new owner, Geely of China, has set its eyes on competing with high-end brand like Mercedes-Benz and BMW.
Geely closed its US$1.3-billion acquisition of Volvo from US giant Ford Motor Company on Monday, signalling a new direction for the brand.
Geely chairman and founder Li Shufu, speaking shortly after completing acquisition, said he wanted to see Volvo make more “high level cars that compete with the Mercedes S-Class and BMW 7-series”.
Li was quoted by UK automotive website Autocar.co.uk as telling a press conference in London that Volvo had the technology and research capabilities to compete at the top end of the market as well as demand higher retail prices.
Meanwhile, Li told China’s official Xinhua news agency that “after the takeover, Geely remains Geely and Volvo is still Volvo.”
“The relationship between the two companies is brotherhood,” he said, “not a parent-and-child relationship.”