Zhejiang Geely Holding Group of China, the new owner of Volvo cars, is apparently having second thoughts on its plans to build a large luxury sedan which was meant to rival the likes of BMW's 7 Series and the Mercedes-Benz S-Class.
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Soon after buying the Volvo company in August this year, Geely CEO, Li Shufu, announced he wanted to create a new large luxury sedan. Shufu was quoted as saying in a recent Automotive News report, he wanted,

"more high-level cars that compete with the S-Class of Mercedes-Benz and the 7 Series of BMW... we need products to compete in that segment."

Although now it seems Volvo CEO, Steven Jacoby, is opposing those plans. He recently told Automotive News in an email,

"Mr. Shufu expressed a vision of where he would like Volvo to be in the future, and that vision includes a 7 Series and S-Class rival. However, short or mid-term, Volvo Cars does not have such a model in the product plan.

Does Volvo really need a larger sedan though? Volvo's current largest sedan is the Volvo S80 which rivals BMW's 5 Series and the Mercedes-Benz E-Class. It is available with a large 4.4-litre V8 engine as well, so it's not as though the company isn't already catering for the luxury sedan market.