Li Shu Fu’s new problem: How to help Volvo help Geely

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It seems Geely Group’s chairman Li Shufu has not put on the agenda the question how Volvo brand will benefit or back feed Geely brand after the group acquired the European luxury brand more than one year ago.

Geely hoped Volvo could drive up the brand image of Geely through the acquisition. However, it seems their “chemical reaction” has not started yet. What’s worse, Volvo’s luxury brand image might be affected for its Chinese parent.

Therefore, Li Shufu put more efforts on retaining the brand image of Volvo brand. They try all efforts to keep Volvo’s brand intergrity by putting forward new brand slogans and introducing Volvo Ocean Race to China in a high profile manner.

In Li Shufu’s plan, it’s more feasible to improve Volvo’s cost advantage with the help of Geely. A Geely executive said during an interview that they have thought it through about how to find out the possibilities of strategic partnership between Geely and Volvo, and Geely will provide low-cost R&D support for Volvo if it’s within their capability.

Li Shufu said that they still have no idea to what extent Volvo will boost Geely brand, and they have not think about it and evaluate it seriously.