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Volvo, Geely form joint ventures to share technology, improve Lynk & CO
Automotive News China | 2017/8/8

Volvo Car Corp. will establish two joint ventures with Zhejiang Geely Holding Group to share technology and develop Geely¡¯s new premium brand, Lynk & CO.

The move is another step by Volvo and its Chinese parent to integrate their operations. Geely acquired the Swedish carmaker from Ford Motor Co. in 2010.

Volvo and Geely signed two agreements on Friday, Aug. 4, in the east China city of Hangzhou, where Geely is headquartered.

¡°We aim to deliver global economies of scale by facilitating closer cooperation between our brands on shared vehicle architectures, powertrain development and electrification,¡± said Geely Chairman Li Shufu.

Li also is chairman of Volvo.

Under the first agreement, Volvo will form a 50-50 technology joint venture with Geely in Ningbo, a coastal city in Zhejiang province.

That venture, GV Automobile Technology, will develop technologies and share all vehicle architectures and powertrains, according to Geely.

The partnership also will establish a joint purchasing operation to save money.

Under the second agreement, Volvo will form a joint venture for Lynk & CO.

Volvo will receive a 30 percent stake in Lynk & CO, while Geely¡¯s Hong Kong-listed subsidiary, Geely Automobile Holdings, will take 20 percent and Geely will have the remaining 50 percent.

Among other things, Lynk & CO will gain access to Volvo¡¯s newest modular platform -- dubbed Scalable Product Architecture -- for midsize and large vehicles.

Volvo already has shared some technology with Lynk & CO, which was unveiled in Germany last year. Lynk & CO¡¯s first model, the 01 compact crossover, uses the Compact Modular Architecture jointly developed by Volvo and Geely. 

The Lynk 01 is built on the same line as the Volvo XC40 at Geely¡¯s Luqiao assembly plant in Zhejiang province. That model is to debut in China this year and is expected to go on sale in Europe and United States in 2019.

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