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Li Shufu, dubbed ‘The Chinese language Henry Ford’ is the person answerable for the takeover of the famend Volvo model, by Zhejiang Geely Holding Group. Li Shufu is the chairman of the corporate that has simply accomplished a $1.8 billion buy of Volvo Automobiles from Ford Motor Co.
This transaction represents China’s largest offshore auto deal and illustrates the rising affect of the nation on the worldwide market. Li Shufu appears to be intent on constructing a worldwide model with excessive status and revenue margins.
Mr. Li Shufu is the son of a farmer from the Zhejiang province, in China. He began to make automobiles in 1997, regardless of criticism that he had no expertise or monitor file. Among the traits of his character are much like Henry Ford’s, starting with their childhood spent on a farm and a dedication to construct automobiles from nothing. Because of this he in all probability wished to purchase Volvo from Henry Ford’s firm.
The settlement to purchase Volvo was first introduced in December 2009, as Volvo has been available on the market since 2008. Ford Motor Co. hoped that Volvo gross sales might repay the money owed and permit specializing in Ford’s core manufacturers on this troublesome time for the auto business.
As Volvo has been struggling to extend gross sales and has not registered income since 2005, this deal might imply a really worthwhile transfer for Volvo. China is the at the moment the world’s greatest automobile market, with an increase of fifty% in comparison with the earlier yr. The corporate additionally intends to learn from the European market Volvo is related to.
Volvo will stay a separate firm with headquarters nonetheless in Sweden. The prevailing manufacturing amenities in Sweden and Belgium will probably be preserved. Automobile manufacturing will nevertheless, happen in China, catering for the Chinese language shoppers. The Chairman of Zhejiang Geely Holding Group desires China to change into the second house marketplace for Volvo.
Li Shufu was skilled as a mechanical engineer, however after graduating highschool he opened a photograph studio in his native village. He moved into fridge components enterprise in 1984, then into bikes turning a state managed firm into the best-known home model in China. He moved into automobiles and his firm turned the most important privately owned automobile maker within the nation.
He got here to be one of many richest males in China by specializing in mass-marketing automobiles with costs round $6,000. Against this, Volvo will promote automobiles for as a lot as $205,000. In 2009, Mr. Li was ranked quantity 44 richest man in mainland China by ‘The 400 Richest Chinese language’ American Forbes. One different pursuit is to fabricate TX4 cabs after making certain a controlling stake with Manganese Bronze, a London based mostly black cab taxi producer.
Though Li had as soon as dreamed of taking America by storm with the most affordable automobile, he modified his thoughts and determined to have a luxurious model as China’s greatest privately owned automaker. And he lastly succeeded, however nonetheless he has to face different issues of an organization with an costly price base and a secure however reasonably boring automobile. Will Li succeed the place Ford failed?
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Source by Dennis J James