Swedish carmaker Volvo and its owner, Geely, have today announced they will work more closely on sharing platforms and technologies in the future.
However, the two companies will not merge, as was suggested in 2020.
There will be more collaboration on areas such as powertrains, sharing of electric vehicle architecture, joint procurement, autonomous drive technologies and aftersales.
As part of the decision, a new company will be formed and operational this year, focused on producing combustion engines, transmission and dual-motor hybrid systems for use by the two brands as well as other firms.
They will also work together on the development and sourcing of next-generation technologies, from connectivity and autonomous drive to car-sharing and electrification. They are planning to share and jointly source batteries, electric motors and connectivity tech.
Plans to share the new SEA and SPA2 electric architectures will allow for an expansion of product portfolios across the Volvo Cars, Geely, Lynk & Co and Polestar brands.
Furthermore, by using Volvo Cars’ existing distribution and service network, the two companies will also collaborate on the global expansion of the jointly owned Lynk & Co brand.
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Keyword: Volvo and Geely to work more closely on future technologies