Geely Chairman Li Shufu hasn't been shy about his desire for Volvo to launch a flagship sedan but executives from the Swedish automaker contend they're not in a position to tackle German competitors like the Audi A8, BMW 7-Series and Mercedes S-Class.

Geely Chairman Li Shufu hasn't been shy about his desire for Volvo to launch a flagship sedan but executives from the Swedish automaker contend they're not in a position to tackle German competitors like the Audi A8, BMW 7-Series and Mercedes S-Class.

The stalemate has been going on for years, but the two sides have reportedly reached a compromise that calls for Volvo to launch a special S80 "China Edition." Designed to appease to the country's elite, the China Edition will reportedly be a stretched and more luxurious version of the next-generation S80 that is currently under development.

While a true flagship isn't in the cards at the moment, two sources have told Reuters that Shufu is still pushing for Volvo CEO Hakan Samuelsson to approve a range-topping S100. Despite the disagreement, Shufu is reportedly pleased with Volvo's new styling direction which was recently previewed by the Concept Coupe. As he explained, "Future cars I've seen, which designers presented to me, are really appealing. I feel very happy and confident this will be a great success."

Be part of something big