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Geely cautions on car recovery

The first-quarter recovery in China's motor industry could prove only temporary, Li Shufu, chairman of Geely, one of China's largest private carmakers, has told the Financial Times.

His comments highlight the debate over whether the Chinese economy has turned a corner to sustained recovery. Speaking on the eve of the Shanghai motor show, Mr Li also called for caution among Chinese carmakers looking to profit from the current downturn in the world car industry by snapping up distressed brands such as Volvo, Saab and GM Europe.

“A brand is closely related to its cultural background. Isolated from that background, it is worthless,” he said, stressing that it would be “not very easy” for Geely or any other Chinese carmaker to make a success of a foreign brand acquisition. “A brand is like a person's name. Even if I change my name to Hu Jintao, I am not Hu Jintao.”

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