Volvo, Geely Resolve Strategic Differences

Volvo Car Corp. and Zhejiang Geely Holding Group Ltd., its owner since 2010, have resolved their operating differences and agreed on a common strategy, the Financial Times says.

The two companies initially clashed over Geely's brash style and Volvo's understated Scandinavian approach. But executives say the first few years of post-acquisition friction are over.

Geely tells the FT there is now "absolutely no misalignment" between the companies on a strategy that pursues Volvo's traditional branding in Europe and the U.S. but also pushes co-development of less expensive and more flamboyantly styled vehicles for the Chinese market.

Volvo CEO Hakan Samuelsson says Volvo has "full freedom" on an operational level, as long as it stays within the overarching strategy and financial limits set by both companies.