The newly reappointed CEO at Volvo Cars Hakan Samuelsson made closer partnership with Geely his top priority as President Donald Trump continues to impose tariffs. As the Volvo CEO for two terms until 2022 then returning to the position this month Samuelsson aims to create cost reductions from Geely relationships without sacrificing US market performance.

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European automakers must manage through the divided global market structures because of growing market complexities. The company plans to maintain imported vehicle sales of hybrids and combustion-engine models for American customers while entering the Chinese EV market against local competitors providing advanced electric vehicles at competitive prices.

The collaboration between Volvo and Geely offers a special benefit through which necessary cost savings can be achieved according to Samuelsson. Samuelsson declared to Reuters about the Geely collaboration that it presents an unparalleled advantage which most automakers cannot access. Samuelsson has demonstrated quick leadership by appointing a new CFO last week followed by executing a cost reduction program and U.S. market restructuring during Tuesday.

The closer relationship between Volvo and Geely represents a change from the independent model used during the leadership of Jim Rowan. Rowan stopped Geely's funding for other companies by both cutting down Volvo's stake in Polestar and selling its ownership of Lynk and Co. The board decided for leadership transition at Volvo because they sought an executive leader with significant industry background according to Volvo's published statement.

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Insiders involved in the situation stated that Rowan disagreed with Geely Chairman Li Shufu (Eric Li) because of his previous experience working mainly in consumer technology industries. New reports indicate that Li Shufu objected to Rowan's management approach because it ran against Eric Li's initiative to develop Volvo technologies through Geely's overall platform. Tensions between the executives were apparent early on, with Rowan perceived as overly focused on Volvo rather than the wider group's synergies.