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GELYY News DJ Zhejiang Geely, Volvo Disagree On Volvo's China Strategy - Report.

Thursday, November 11, 2010 10:31 PM

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News for 'GELYY' - (DJ Zhejiang Geely, Volvo Disagree On Volvo's China Strategy - Report)

SHANGHAI (Dow Jones)--Chinese auto maker Zhejiang Geely Holding Group Co. and the management of Volvo Cars have different opinions on how to develop the Swedish car maker's branding strategy in China, state-run Securities Times reported Friday, citing Geely Chairman Li Shufu.

Li said Chinese car buyers tend to prefer luxury models, so Volvo should focus on producing large cars for the China market.

However, Volvo's management feels large cars require more fuel and raw materials, which wouldn't be consistent with the global auto industry's movement toward low-carbon, environmentally friendly cars, the report cited Li as saying.

"Regarding the differences between Volvo and me, time will resolve them and lead to improved coordination between both sides," the report cited Li as saying.

Li said he expects Volvo to be a luxury brand, while Geely focuses on the mass market, according to the report.

Geely acquired Volvo from Ford Motor Co. for $1.8 billion in August.

Newspaper website: http://www.secutimes.com

-By China Bureau, Dow Jones Newswires; 8621 6120-1200; [e-mail]

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(END) Dow Jones Newswires

November 11, 2010 22:31 ET (03:31 GMT)

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