Geely has owned Volvo since 2010 and has given the Swedish automaker a lot of free room. Today they announced that their cooperation will increase while maintaining their independence.
Along with that announcement came the news that they would be establishing a new company to produce powertrains. Essentially a combination of their existing powertrain departments, it is expected to become operational this year.
The new standalone company will produce internal combustion engines, transmissions, and next-gen dual-motor hybrid systems. The powertrains will be used by both companies as well as other manufacturers.
The deeper collaboration that the two promised, meanwhile, will focus on the development and sourcing of connectivity and autonomous drive technologies. The companies have also expressed an interest in car-sharing business models and further electrification.
Also Read: Geely And Foxconn To Make EVs In China For Faraday Future
Geely and Volvo will therefore share batteries and jointly source them. Electric motors and connectivity features will also be shared by the cars they produce. That all makes sense since they already share vehicle platforms. By working together to source the parts that go into those platforms, they hope to make production more efficient.
“Having evaluated different options to realize value, we concluded jointly that a collaboration model between two standalone companies is the best way to secure continued growth and at the same time achieve technological synergies in many areas,” said Volvo’s CEO Hakan Samuelsson. “We welcome the opportunity of further and deeper collaboration with Geely Auto.”
Geely will also use Volvo’s dealer and service networks to push the global expansion of Lynk & Co. The brand’s 01 model is based on the Volvo XC40 and it has previously expressed an interest in selling cars in America, though an exact timeline hasn’t been made public.
“Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses,” said An Conghui, Geely CEO. “This will enable Geely Auto to accelerate its global expansion.”
