Volvo and Geely deepen partnership
Volvo Cars is planning to set up a new joint venture technology company with Geely Holding, the Chinese car group.
The move will see the entities share existing and future technology, deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next-generation electrified vehicle technology.
According to a Memorandum of Understanding, Volvo Cars, Geely Auto and LYNK & CO will share vehicle architecture and engine technologies via cross-licensing arrangements of technologies managed by the new joint venture. They will also cooperate more deeply by commonly sourcing components and cutting procurement costs.
Volvo Cars, Geely Auto and LYNK & CO are controlled by Geely Holding, the Chinese car group. The new joint venture will be 50/50 owned by Volvo Cars and Geely Holding and be headquartered in China with a subsidiary in Gothenburg, Sweden.
‘Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting,’ said Håkan Samuelsson, president and chief executive. ‘This planned collaboration will strengthen Volvo’s ability to develop next-generation electrified cars.’
Separately, Volvo will also take a significant minority shareholding in LYNK & CO.