Volvo Cars Owner Says Management Has Geely’s Confidence
China’s Zhejiang Geely Holding Group Co. (175) dismissed concerns that it’s unhappy with the direction of its Swedish car-making unit Volvo Car Corp.
“Our board and executive management are united on the strategic direction of Volvo,” Li Shufu, founding chairman of the Chinese carmaker, said today in an e-mailed statement to Bloomberg News. “We are committed to delivering ambitious product plans and market growth, with my total support.”
Chairman Li was responding to a Reuters report citing unidentified sources that said there was discord between the Chinese parent and the Swedish carmaker over the brand’s direction. Volvo Cars said earlier this week that it returned to profit last year and expects growth in 2014.
Led by Chief Executive Officer Hakan Samuelsson, Volvo is in the midst of an 11 billion-euro ($15 billion), four-year expansion plan. The company will present a revamped version of the XC90 sport-utility vehicle this year. The model will be the first developed since Geely bought the manufacturer from Ford Motor Co. in 2010.
“The management team led by chief executive Hakan Samuelsson has my complete confidence and trust,” Li said.
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