Volvo Shuffles Management, Readies China Strategy

What was a few months back a reason for joy for both the Chinese from Geely and the Swedish from Volvo slowly began turning into something entirely different. Rumors about possible internal Geely-Volvo disputes, the CEO's statements that Volvo needs to be premium no more, they all made for a very rough year for Volvo, right when everybody seemed convinced the marriage would work.

Volvo's mixed management apparently still believes that. During the last board meeting, held on December 9 in Gothenburg, Sweden, Volvo-Geely's top brass announced, without providing details, that they have agreed on the plan for China.

"The board made several key decisions to set the strategic direction for Volvo's business in order to guide the company and our future business success," said Li Shufu, Volvo chairman of the board.

 "We have a common and undivided focus to create a sustainable plan for Volvo Cars' way forward in China. This plan will be based upon a thorough analysis of which models to build in China and which to import, anticipated volumes and the local production capacity to deliver these cars," Li added.

In addition to deciding on the Chinese issue, Volvo has also appointed two new executives. The company's new financial officer will be Jan Gurander, who will be replacing Hans Oscarsson in April next year.

Lex Kerssemakers has been put in charge with the newly created Product Strategy & Vehicle Line Management, one which will be in charge with the car lines and the development of new vehicles.