Volvo and Geely team up to create next-generation EV technology
Volvo Cars and Geely Holding have completed the formation of two new entities, created for sharing existing and future technology and providing the economies of scale that will allow them to develop next-generation electric vehicles technology more quickly.
The agreements were signed at a ceremony in Ningbo, China, and outline and formalise the strategic priorities involved, as well as the management teams and targeted synergies for group collaboration.
The new technology joint venture will be called GV Automobile Technology Co. Ltd., and will be owned 50/50 by Volvo and Geely. Former SVP of Volvo Cars and CEO of Volvo Cars Asia Pacific will become Chairman of GV Technology. A separate LYNK & CO company, responsible for the full LYNK & CO line will be formed, jointly owned by Volvo Cars, Geely Holding, and Geely Auto with a new board of directors.
An Cong Hui, President and CEO of Geely Auto has been named LYNK & CO’s Chairman of the Board. Hakan Samuelsson, President and CEO of Volvo Cars will serve as Board Director alongside Daniel Li, Executive VP and CFO of Geely Holding, and Feng Qing Feng, Group CP and CTO of Geely Auto.
Li Shufu, Chairman of Geely Holding, said: “These joint ventures will create significant value for our automotive brands. We aim to deliver global economies of scale by facilitating closer cooperation between our brands on shared vehicle architectures, powertrain development and electrification, while offering synergies that will enable LYNK & CO to achieve its full potential.”
Volvo and Geely already share technology, notably the Compact Modular Architecture being used by Volvo for its soon-to-be-announced smaller range of 40 series cars and by LYNK & Co. Samuelsson added:
“We look forward to expanding our cooperation with LYNK & CO. It will be beneficial for both companies.”
The formation of LYNK & CO is expected to be finalised in September.
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