Li Shufu, the owner of Geely and Volvo Cars, said the trade war was bad for Chinese automakers.(Xinhua News Agency/File Photo)
Volvo Cars owner Li Shufu has warned of the adverse effects of the trade war, saying consumers and automakers will be hurt by the dispute between the United States and China.
Li Shufu, whose Zhejiang Geely Holding Group Co. owns the Swedish automaker, said both Volvo and his Geely brand in China would be hit if trade tensions escalated, as the companies trade wars between the U.S. and China, according to Bloomberg.Export cars.Consumers will end up bearing higher costs if automakers need to build factories in every market to avoid tariffs, he said at an event in Hong Kong on Thursday.
If the U.S. imposes import tariffs on China, it will be bad for Chinese automakers, he said.If China imposes tariffs, it will hinder Volvo's ability to export cars made in the United States to China.
The ownership of a Swedish carmaker by a Chinese billionaire is a prime example of the interconnectedness of global car manufacturing and how trade tensions will hit players in the industry.Volvo has been building the S60 midsize sedan in China and exporting it to the U.S. -- though it has started building the car at a plant in South Carolina, allowing Volvo to insulate somewhat from the trade dispute.
Low tariffs can ensure that global integration benefits consumers, Li said.If the trade war continues to escalate, it will ultimately hurt consumers as they have to pay more for cars.
