The move is not as simple as it seems – the Chinese company appears to have preempted the move and has taken strategic steps of its own.
Following China’s Geely’s claiming a 10% stake in Daimler, AB Volvo, a Truckmaker dropped the head of Geely-owned Volvo Cars from its board due to competition concerns.
Volvo Cars is a subsidiary of Zheijang Geely Holding Group Co, which is owned and founded by Li Shufu.
Incidentally, Hakan Samuelsson, Volvo Cars’ Chief Executive has been on AB Volvo’s board since 2016.
Prior to that he wa the CEO of MAN, a German truckmaker, upto 2009. Two years after Geely acquired the company, he became the CEO of Volvo Cars.
“The reason that Hakan Samuelsson is not proposed for re-election is the announcement that Geely Group has become the largest shareholder of the German vehicle manufacturer Daimler, one of the Volvo Group’s major competitors,” said AB Volvo’s election committee in a statement.
AB Volvo will however find it difficult to sever ties with Geely, given that the Chinese firm struck a deal in December 2017 to buy Cevian Capital’s 8.2% of shares and 15.6% voting rights in AB Volvo.