Volvo Cars & Geely deepen partnership with joint venture

Volvo Cars & Geely deepen partnership with joint venture-volvo

Volvo Cars founds a new joint venture with Geely Holding. This serves to ensure that the Swedish premium manufacturer and the Chinese automotive group can share current and future technology more closely with each other. In addition to the resulting synergies and economies of scale, the more intensive cooperation should also accelerate the development of the next generation of electrified vehicles. The two companies will also work together to purchase components to reduce procurement costs.

“Partnerships to share know-how and technologies are common practice in the automotive industry. We adopt this model. Through the planned collaboration, we will improve our ability to develop the next generation of electrified vehicles.– Håkan Samuelsson, President and CEO of Volvo Car Group

Even before the formation of the new joint venture, Volvo Cars and Geely shared the new compact modular architecture (CMA) on which the future Volvo 40 Series and LYNK & CO models will be based. The intellectual property of the shared technologies remains with the developing company.

However, mutual rights of use are granted through license agreements. Any costs incurred for future modular vehicle architectures and other technology will be shared. The company responsible for the development is the owner of the respective development, but the other company also has full access to these developments.

In the future, there are plans to expand the cooperation to include components of electrified vehicles such as battery cells, electric motors and charging systems in order to maximize synergies and reduce costs in the long term.

Separately, Volvo today announced it would take a significant minority stake in LYNK & CO. This participation reflects the fact that LYNK & CO benefits now and in the future from the use of Volvo technology. The company will then be jointly owned by Geely Holding, Geely Auto and Volvo Cars.

“By sharing next-generation technologies and vehicle architectures, we are unlocking benefits across our entire portfolio. I’m sure that, despite these synergies, we will retain the independent identity and strategic autonomy of our different automobile brands.– Li Shufu, Chairman of the Geely Holding Group

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