Just four years later three of his company's light bus models and one sedan model obtained production license from the state, making Geely Group the first private automaker in China. By 2009, the company's annual sales volume reached 330,000 cars. At the 2010 Beijing International Automotive Exhibition held from April 23 to May 2, Geely attracted spectators' eyes with its offerings of 39 buses and sedans, 14 types of engines, gearboxes and transmission integrations, and even one driving simulator.

But Li's most audacious obsession is with acquisition. Early in 2002, Geely made a bid to purchase the Land Rover from Ford, but the deal fell through and the company was snapped up by India's Tata Motors. Then it set its sights on the Smart line held by Mercedes in early 2006, and dispatched negotiators to the Benz Headquarters, but an agreement was never realized. It was not until 2009 that Geely was able to make its first international acquisition with Australian Drivertrain Systems. The idea to go after Volvo seemed a natural one when the opportunity arose. When asked about his reasons for buying Volvo, Li summed it up by simply stating, "I love that brand."

Volvo on a Roll

Geely's purchase of Volvo might in some ways echo Tata Motors' acquisition of the Jaguar and Land Rover lines from Ford in 2008. As seen by the current lackluster performance of Tata, reviving the fortunes of Jaguar and Land Rover was far easier said than done. It remains to be seen if Geely can pull Volvo round and disperse critics' fears.

As a keen buyer, Li Shufu made an in-depth analysis of Volvo's weaknesses and concluded that the essential reason that it was not doing well was due to its small market from which Ford could not recover the huge amount of capital it put into Volvo's research and development.

"Losses can be recouped if annual sales could reach 370,000 vehicles," concluded Li Shufu after his careful calculation. He argued that the Chinese market should have the potential to absorb at least 200,000 vehicles, far higher than the current 12,000. Therefore, the newly built Volvo plant in Beijing is expected to yield up to 300,000 vehicles per year, two thirds of which will be marketed in the domestic market and the remaining third in other Asia-Pacific countries. The anticipated renaissance plan also includes the establishment of a new research and development center in China.

Li Shufu has set an ambitious five-year target for Volvo – an accumulative sales volume of one million cars – and prescribed the means: "We'll revive Volvo's vitality and creativity using 'traditional Chinese medicine'." Retaining its original management team instead of supplanting it with Geely's is the first cut-and-dry decision.