Volvo rejigs China business in push to counter stalling sales

For more automotive coverage and exclusive interviews, subscribe to our weekly Cars & Culture newsletter. You will receive the latest in EV's, F1, design, automotive culture and collaborations — delivered straight to your inbox. Volvo Car, the Swedish brand controlled by Zhejiang Geely Holding Group, is handing more power to its executives in China as the carmaker looks to boost sales in the fiercely competitive local market. A change to its governance model will see local teams better tailor manufacturing, product and technology developments to meet the demands of the China market, the company said in a statement. Zhu Ling became head of Asia Pacific operations for Volvo on September 1, it said. He was formerly vice president at Zeekr Intelligent Technology Holding, the premium electric vehicle brand that Geely is taking private. The Chinese market is important for Volvo and “has unique characteristics and consumer demands that require a more regional approach and the ability to adapt quicker,” the company said. Trade war casualties force strategic pivot Like many major automakers, Volvo has been hit hard by U.S. President Donald Trump’s tariffs. But with a Chinese parent company and production bases in China, it’s also had to navigate hefty European Union import taxes on made-in-China EVs. The challenges have prompted Volvo to shake up operations and it’s shifted output to plants in South Carolina as well as Belgium. The carmaker said the Chinese unit will continue to report regularly to headquarters and there haven’t been changes to current corporate structure or ownership. Volvo’s sales in China slumped 8% in the first seven months of the year, according to the China Automotive Technology and Research Center, with global deliveries dropping 10% in the same period. The carmaker is already undergoing a sweeping 18 billion kronor ($1.9 billion) efficiency program as it contends with prolonged trade tensions and shaky EV demand. It’s cutting about 7% of its global workforce, or roughly 3,000 positions, to reduce costs and protect profits. The reduction in China mostly affected staff at Volvo’s research and development center in Shanghai, local media reported in July. The overhaul comes as parent, Geely Group, undergoes its own consolidation. After more than a decade of ambitious expansion, including the acquisition of Volvo, billionaire founder Li Shufu is streamlining his sprawling auto empire to better compete with the likes of BYD. That includes folding Zeekr and Lynk&Co into Geely Automobile Holdings, the Hong Kong-listed arm of the group. By Linda Lew and Rafaela Lindeberg

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Volvo rejigs China business in push to counter stalling sales