Chen Lizhe replaces Fu Qiang and Liu Yan, embracing Volvo’s 100,000 units’ sales target

Liu Yan, COO of Volvo China Sales Company submitted her official resignation on July 11th, after President and CEO Fu Qiang, who left Volvo China on May 16th. Reporters learn that during their four-year cooperation period, Volvo’s annual sales volume has increased from 40,000 units to 80,000 units in China. However, the annual target of 100,000 units has not achieved, which will be a test stone for the replacer, Chen Lizhe and his team.

Chen Lizhe, a former Volvo CEO in charge of Taiwan market, was appointed as CEO of Volvo China on June 1st, taking charge of the market, sales, channels and after-sales businesses. Volvo has put great expectation on Chen Lizhe and his teams, hoping they will lead Volvo achieve the annual sales target of 100,000 units as soon as possible.

Data shows that Volvo sells 4,0688 units vehicles in China during the first six months, increasing 6.3% with last year. But the growth is still lower than Volvo’s global growth, which is 10.5%. In contrast, competitors are performing well. Benz, Lexus all keep growths of 35.9% and 27% respectively in the first half of year. Volvo faces great challenges if it intends to keep growth. Facing the intense competition, Chen Lizhe and his team need to accelerate internal integration, further optimize sales channels and explore the market. More products are also needed to be imported to seize the Chinese market.

Volvo ranks sixth in the Chinese luxury market in terms of sales volume, which is 5,000 units less than Lexus in the first six months. It seems quite impossible for Volvo to achieve the 100,000 units’ target and great efforts are also needed to narrow the gap between Lexus.