No sooner has the dust settled over the purchase of Volvo by the Chinese company Geely that a flurry of activity has already started and all of it is aimed at making Volvo a big player in the luxury car segment. In fact Volvo has already started making headlines since the takeover by Geely from Ford was finally completed recently. As per Li Shufu who is the chairman of the newly acquired Volvo, there are intentions to build a car that would compete with the likes of BMW 7-Series and the Mercedes-Benz S-Class. The luxury sedan segment is the only area where Volvo has been lacking in presence till date.
The reason for Volvo not having such a car in its line up that can match up to the S-Class or the 7 Series is that with Ford being the owner of both the Volvo and the Jaguar brands, obviously it wouldn’t have been a wise move on part of Ford to allow Volvo to develop a car that could steal out the sales of a similar car from Jaguar. Now with the takeover complete and under the new ownership, there are all the reasons to speculate there is going to be a shift on part of Volvo towards the big car segment as well. No word has yet been heard from the new owners of Volvo and therefore all of it are speculations as yet.
It is up to Li to convince the board about the wiseness of this move and that does not appear to be a tough task.
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