Biz / Auto

Geely and Volvo sign agreements to create two joint ventures

Zhejiang Geely Holding Group and Volvo Cars have completed the formation of two new joint ventures enabling closer co-operation on automotive technology and component sourcing.

Zhejiang Geely Holding Group today signed two agreements with Volvo Cars to create new joint ventures enabling closer co-operation on automotive technology and component sourcing.

The two new joint ventures will be called GV Automobile Technology (Ningbo) Co Ltd and LYNK & CO Joint Venture.

Geely and Volvo will cooperate more closely on vehicle architecture, engine technologies, and purchasing, and they will jointly develop next-generation electric vehicle systems.

The two companies will also work on electric vehicle components such as battery cells, e-motors and charging systems.

“Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting,” said Hakan Samuelsson, chief executive officer of Volvo. “This planned collaboration will strengthen Volvo’s ability to develop next-generation electric cars.”

The two joint ventures represent a deepening of the collaboration between Geely and Volvo. The agreements signed today cover topics such as strategic priorities, management teams and targeted synergies for these projects.

GV Automobile Technology (Ningbo) Co Ltd, which will be 50-50 owned by Volvo Cars and Geely Holding, is headquartered in China, with a subsidiary in Gothenburg, Sweden.

LYNK & CO Joint Venture, also formally created today, will be jointly owned by Geely Auto, Geely Holding and Volvo cars under a 50-20-30 percent share structure.

“The two joint ventures will create significant value for our automotive brands. We aim to work together on shared vehicle architecture, powertrain development and electrification,” said Li Shufu, chairman of Geely Holding.

Lars Danielson, former senior vice president of Volvo Cars and chief executive officer of Volvo Cars Asia Pacific, will become the chairman of GV Automobile Technology Co Ltd. 

An Cong Hui, chief executive officer and president of Geely Auto Group, will become the chairman of the LYNK & CO Joint Venture.

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