Volvo Cars should do more to leverage global partnerships, Geely's Li Shufu says (updated)

Volvo AB

31/03/2026 13:41

Adds background in paragraphs 2 and 5, Volvo Cars CEO quote in 6-7

GOTHENBURG, March 31 (Reuters) - Volvo Cars VOLCARb.ST should deepen cooperation with sister brands such as Polestar PSNY.O and Geely Autos 0175.HK and bolster its research and development capabilities in China, Volvo Cars and Geely Holding chair Li Shufu said on Tuesday.

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.

"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.

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.

"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 by Marie Mannes and Alessandro Parodi. Editing by Louise Rasmussen and Mark Potter)

 ((Alessandro.Parodi@thomsonreuters.com;))