Geely Automobile founder Li Shufu has resigned as chairman and executive director of the Chinese carmaker as part of a major leadership change.

An Conghui has taken over as chairman, while Gan Jiayue has been appointed chief executive officer. The changes took effect on 18 August.

Li founded Geely in Taizhou, Zhejiang, in 1986. The business first produced refrigerator parts before it entered motorcycle and automobile production. It has since grown into one of China’s largest automotive groups.

Geely said Li stepped down to devote more time to his other business interests and support the company’s long-term succession plan.

He will serve as honorary chairman for life, but the title gives him no formal authority within Geely Automobile’s corporate governance structure. Li will also retain his controlling stake in the listed carmaker.

Li continues to serve as chairman of parent company Zhejiang Geely Holding Group. The group’s automotive portfolio includes Volvo, Polestar, Lotus, Zeekr and Lynk & Co.

Li told the board that he had no disagreement with its members and that there were no other issues related to his resignation that should be disclosed to shareholders.

An Conghui previously served as an executive director of Geely Automobile. His appointment follows the succession plan that the company announced on 5 June.

The board said the leadership change would strengthen professional management and improve corporate governance.

Geely vice chairman Gui Shengyue said the company would rely more on its management systems and internal pool of executives instead of the authority of one individual.

Gan moves into the CEO post after serving as an executive director. He replaces Gui, who has become vice chairman but stays on the board as an executive director.

Daniel Li Donghui has stepped down as vice chairman, although he will continue to serve as an executive director. Geely said his departure from the post did not raise any issue that required the attention of shareholders.

An’s links to Geely’s controlling shareholder will remain subject to board oversight. The company’s independent directors will monitor possible conflicts of interest under Hong Kong Stock Exchange rules and Geely’s own governance policies.

The change comes as Geely pursues further growth outside China. An said the carmaker wants overseas markets to account for two-thirds of its total sales in the long term. It also targets a five percent share in each major region by 2030.

Geely plans to rely on partnerships and existing factories instead of building more production sites overseas.

Volvo’s European plants may produce luxury vehicles for other Geely-owned brands.

The group also reached an agreement with Ford to produce electric SUVs at the US carmaker’s factory in Spain and jointly develop a vehicle for Europe.