On August 18th, news emerged online that Qin Peiji, the President of Volvo Car's Greater China Sales Company, would soon depart. That afternoon, Volvo issued a statement confirming Qin Peiji's departure and announced his successor.
Volvo stated that the current General Manager of Volvo Cars in Japan, Martin Persson, will return to China to lead the business operations of Volvo Car's Greater China Sales Company. Persson will report directly to Volvo's Chief Commercial Officer and Deputy CEO, Björn Annwall. Previously, Qin Peiji reported to Yuan Xiaolin.
Notably, the statement revealed Yuan Xiaolin's position as President of the Greater China region. Although an internal document from Volvo dated August 17th emphasized that Yuan Xiaolin's position remains unchanged, during a public appearance before the auto show, he still held the title of Senior Vice President of Volvo Car Group, as well as the President and CEO of Volvo Cars Asia Pacific.
In the future, Yuan Xiaolin will primarily cooperate with JIM, EMT, and board members, handle government relations, stakeholder cooperation, strategic cooperation with Geely Holding Group, and other crucial matters like strategic investments in Greater China.
Qin Peiji joined Volvo Car's Greater China in 2011 and successively held positions such as Vice President of Sales and Dealer Network in Greater China, and Chief Operating Officer of the Greater China Sales Company. In 2019, he was appointed President of Volvo Car's Greater China Sales Company.
During the Shanghai Auto Show in April, Qin Peiji claimed at Volvo's 2023 TECH DAY that "What new forces have learned in ten years, we learned in three. What we know, they won't learn in a decade." This statement gained him significant attention, turning him into an internet sensation.
Qin believes that what new entrants won't grasp in ten years is systemic capabilities, including comprehensive quality management systems, 4S store management systems, financial control systems, etc. He feels that "The logic of enterprise operation lies in stability and sustainability," and that Volvo is aiming for the long term.
There had been no prior disclosures about personnel adjustments in Volvo Greater China. Volvo's explanation is that this decision is an integral part of accelerating growth and actively driving electrification, aligned with Volvo's global strategy.
During Qin Peiji's tenure as President of Volvo Car's Greater China Sales Company, Volvo's annual sales in China grew from 150,000 units to 170,000 units. However, in 2022, Volvo's sales in the Chinese mainland were 162,000 units, a decrease of 5.3% compared to the 171,000 units in 2021. From January to July this year, Volvo's cumulative sales in China were 93,000 units, a slight increase of 8%. However, sales in July alone declined by 8%.
In contrast, Volvo's global market momentum is strong. From January to July, Volvo sold 396,000 units worldwide, an increase of 18%. Especially in European and US markets, Volvo's sales for the first seven months increased by 23% year-on-year.
Analysts mentioned that the bottleneck in Volvo's growth in China might be related to the weakening safety advantage. Volvo had previously established its market presence with the "safety" label. However, as safety features like AEB and airbags have become widespread, Volvo's safety advantage has diminished.
At the same time, Volvo's electrification progress has not been smooth. Earlier this year, Qin Peiji said that the company would accelerate its electrification transition. Between 2023-2024, Volvo will launch four new pure electric models in the Chinese market: the flagship SUV EX90, EX90 EXCELLENCE (4-seater flagship version), small electric SUV EX30, and luxury electric MPV.
According to the original plan, the EX90 would be released domestically in the second half of this year and produced by the end of the year. However, Volvo recently adjusted the mass production time for the new car to the first half of 2024. Volvo explained that, "To ensure the high-quality delivery of the Volvo EX90, more time is needed for additional software development and testing."
Clearly, one of Martin Persson's primary tasks upon taking over China's operations will be to promote the production and delivery of the EX90 and roll out the electrification strategy on schedule.
According to Volvo, Martin Persson worked in China for three years from 2015-2017, mainly responsible for customer service and post-sales.
Mr. Björn Annwall, Chief Commercial Officer and Deputy CEO of Volvo Cars, stated, "He (Martin Persson) has a wealth of commercial knowledge, excels in nurturing local talent, promoting cross-cultural cooperation, and possesses profound insights into direct customer relations, leadership, and values. This is crucial for Volvo to accelerate its electrification transition and become a leading brand in China's luxury electric vehicle market."
