Volvo and Geely refuse to organize a joint venture

Volvo and Geely refuse to organize a joint venture

February 25, 2021 0 By autotimesnews

However, automakers will continue to cooperate in the field, but will continue to jointly develop platforms, software and technologies.

Volvo and Geely Auto remain independent, but they will remain partners to negotiate more collaboration to develop future technologies, but have ruled out plans for a complete merger. Both companies are owned by the Geely Holding Group and are already working together in various fields. They announced plans for a full merger last year, but now the parties say they can benefit more from expanding their cooperation by remaining separate businesses.

Volvo, acquired by Geely Holding in 2010, and Geely Auto are already using a number of joint platforms – CMA, SPA2 and the future SEA electric architecture – and are in the process of merging their combustion engine divisions into a separate business. They also worked together to create the Lynk & Co and Polestar brands.

The new agreement will include expanded development and use of common electrical architectures to expand the product portfolio of all four brands. This will also include the development of a next generation platform for modern autonomous vehicles that will use the latest technology.

Volvo and Geely will also work together to jointly develop communications technology and software and will increase their joint purchases to reduce costs. The agreement allows Lynk & Co to continue to expand globally by leveraging Volvo’s service network.

Volvo CEO Håkan Samuelsson said the decision to expand the partnership rather than pursue a full merger was “the best way to achieve a strong combination and make both companies stronger.”

“Volvo and Geely are two of the fastest growing car companies in the world, so it is important that we remain able to continue growing without losing momentum. This is truly the best combination and the best way forward for both our companies and employees, clients and investors. It brings all the benefits of the merger without any potential disadvantages, ”said Håkan Samuelsson.