Finance
Volvo Cars Should Do More to Leverage Global Partnerships, Geely Holding's Li Shufu Says
Published by Global Banking & Finance Review®
Posted on March 31, 2026
2 min readLast updated: March 31, 2026
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At its March 31 AGM in Gothenburg, Volvo Cars and Geely Holding chair Li Shufu urged Volvo to deepen collaboration with sister brands like Polestar and Geely Auto and boost R&D in China to avoid isolation and address last year’s over $1 billion impairment. He emphasized the board is actively seeking
Volvo Cars should do more to leverage global partnerships, Geely's Li Shufu says
Volvo Cars Urged to Deepen Cooperation and Enhance R&D in China
Calls for Stronger Collaboration with Sister Brands
GOTHENBURG, March 31 (Reuters) - Volvo Cars should deepen cooperation with sister brands such as Polestar and Geely Autos and bolster its research and development capabilities in China, Volvo Cars and Geely Holding chair Li Shufu said on Tuesday.
Strategic Moves and Financial Decisions
The Swedish carmaker, majority owned by Geely Holding, said earlier on Tuesday it would swap more than $300 million of Polestar's debt into shares to streamline U.S. production. The move came a day after Volvo announced an exclusive European distribution deal with Lynk & Co, another Geely brand.
Risks of Isolation and Board's Response
"Working in isolation will ultimately lead to a self-destructive path to obsolescence," Li Shufu said during Volvo Cars' annual general meeting, referring to more than $1 billion in impairments the company booked last year.
"The board is actively working to address these serious challenges and is working to identify viable solutions without delay," he added.
Market Challenges and Leadership Changes
Amid a slowdown in electric vehicle demand and mounting pressure from tariffs, Volvo Cars last year brought back its former CEO and previous Polestar chair Hakan Samuelsson, who has said synergies will be central to his strategy.
Leveraging Geely Relationship for Cost Efficiency
"The relatively new Chinese automotive industry is going to take a large part of the market," Samuelsson said on Tuesday.
"We have a unique opportunity with our relationship with Geely to use these synergies and minimise the development costs and also take on board lower costs for materials and modules."
Reporting Credits
(Reporting by Marie Mannes and Alessandro Parodi. Editing by Louise Rasmussen and Mark Potter)
Key Takeaways
- •Li Shufu warned that “working in isolation will ultimately lead to a self‑destructive path to obsolescence,” urging Volvo to leverage its ecosystem amid a significant impairment charge over $1 billion last year (svd.se).
- •He recommended closer collaboration with sister brands such as Polestar and Geely Auto, citing the benefits of shared R&D, manufacturing, and commercial operations (apnews.com).
- •Polestar’s ownership structure has shifted—Volvo’s stake reduced to around 16%, while Li Shufu’s PSD Investment and Geely now collectively control roughly 80%, underscoring the rationale for deeper integration across the group (chinaevhome.com).
References
Frequently Asked Questions about Volvo Cars should do more to leverage global partnerships, Geely Holding's Li Shufu says
1What did Li Shufu suggest for Volvo Cars at the annual general meeting?
Li Shufu suggested that Volvo Cars should increase collaboration with sister brands like Polestar and Geely Autos and strengthen its R&D in China.
2Why does Li Shufu believe working in isolation is risky for Volvo Cars?
He warned that working in isolation could lead Volvo Cars towards obsolescence and self-destruction.
3What challenges did Volvo Cars face last year?
Volvo Cars faced over $1 billion in impairments, prompting the board to seek viable solutions.
4Which brands did Li Shufu highlight for possible collaboration with Volvo Cars?
Li Shufu mentioned Polestar and Geely Autos as brands for potential collaboration.
5Where did this announcement take place?
The announcement was made in Gothenburg during Volvo Cars' annual general meeting.
