Europe's news in English

COPY LINK

CHINA

Volvo and Geely in two minds over China plans

Volvo Cars and its Chinese owners Geely have different ideas on how best to market the Sweden-based firm's models in China.

Published: 13 November 2010 11:16 CET

Volvo and Geely in two minds over China plans

Geely chairperson Li Shufu wants to see large, luxury vehicles which is not part of Volvo’s plans for China.

Li aired his opinions in the Chinese state-owned Securities Times (ST) newspaper, the first time the Chinese owners have publicly expressed an opinion distinct from their Swedish subsidiary.

According to Li, Volvo Cars maintain that large cars require more fuel and more material to manufacture, and argue that the global car industry is developing towards more fuel-efficient and eco-friendly models.

Li Shufu appeared unruffled by the differences of opinion, arguing that they will be solved given time and would lead to an improvement in coordination between the firms, while he is reported to have expressed criticism in his interview.

Any connection between Li’s criticism and the resignation of Magnus Jonsson, head of Volvo’s product development, has been rejected by Jonsson in a comment to the Göteborgs-Posten (GP) daily.

Volvo Cars has not issued a response to Li Shufu’s comments.

“We have not had it confirmed from Li Shufu directly. We have sent an email to Geely, but have not received an answer,” said Volvo Cars’ Olle Axelson to GP.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

China derides Copenhagen democracy meet as 'political farce'

Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.

Url copied to clipboard!