Volvo Cars and Geely Auto have agreed on a wide-ranging collaboration that will maximise the strengths of the Swedish and Chinese automotive groups, delivering synergies in powertrains, sharing of electric vehicle architecture, joint procurement, autonomous drive technologies and aftersales.
- Powertrain operations to be combined in new company focused on next-generation hybrid systems and internal combustion engines
- Expanded use of shared modular architectures for electric vehicles (EVs)
- Enhanced collaboration in autonomous and electric-drive technologies
- Joint procurement to cut purchasing costs
- Lynk & Co to expand globally by utilising Volvo distribution and service network
- Companies to retain independent corporate structures
Following a detailed review of combination options, Volvo Cars and Geely Auto have concluded they can secure new growth opportunities in their respective markets and meet evolving industry challenges through deeper cooperation, while preserving their existing separate corporate structures.
The deeper collaboration will enable existing stakeholders and potential new investors in Volvo Cars and Geely Auto to value their respective standalone strategies, performance, financial exposure and returns. We will also have the opportunity to explore capital market options.
The collaboration will be overseen by a new governance model, supported by Geely Holding, the lead shareholder in both companies.