Under Geely’s direction, Volvo could be shifting to luxury segment

Competing visions between Volvo’s Stefan Jacoby, the company’s European chief executive, and Li Shufu, the new Chinese owner of Geely Holding Group, appears to be moving Volvo in a new direction while the European office strives to maintain the brand’s reputation for safety and family friendly vehicles.  Li Shufu has been outspoken in his desire to have Volvo compete with BMW and Mercedes Benz in the luxury segment.  “Volvo and Mr. Jacoby can take the moral high ground and stick with the company’s tradition of understated, more modest style, but the brand has no future in China unless it caters to flashier tastes,” Li says.  Recently, both Li and Jacoby seem to be finding some common ground as they move toward an ambitious turnaround plan for Volvo. One sign of a compromise is the new Concept Universe luxury car which was launched in Shanghai in April.  It is luxurious, but not as large as the Mercedes S-Class. (June 8, 2011)