On February 24th, Volvo Car Corporation and Geely Automobile Holdings Limited announced their collaboration to achieve the best merger plan. Both companies aim to deepen their collaboration in the four aspects of automotive transformation: electrification, intelligence, networking, and sharing, while maintaining their existing independent corporate structure.
The following plans are included in this collaboration:
- Both parties will merge their powertrain businesses to establish a new company, focusing on developing a new generation of dual-motor hybrid power system and high-efficiency internal combustion engines.
- Both parties will jointly develop and use the next-generation pure electric exclusive modular architecture.
- Both parties will develop the world’s leading highly automated driving solution based on their rich research and development results and experience.
- Both parties will expand their joint procurement scope and scale to reduce costs.
- Lynk & Co will fully utilize Volvo’s overseas channels and after-sales network to gradually service global users.
- Both parties will maintain their existing independent corporate structure.
According to the cooperation agreement, Geely Automobile and Volvo Car will focus on futuristic technology in powertrains, “three-electrification” technology, highly automated driving, and cooperation, to promote technological innovation continuously. Both parties will merge their powertrain businesses through equity merger to establish a new company, focusing on the development of a new generation of dual-motor hybrid power system and high-efficiency internal combustion engines. In addition to continuing to supply to both parties, they will also provide products and services to third-party automotive companies. The company is expected to be operational by the end of this year.
In the field of intelligent electric vehicles, both parties have launched joint development of the next-generation pure electric exclusive modular architecture based on the current shared SEA vast, SPA2 electric vehicle architecture, achieving the sharing of core technical achievements and scale advantages. The Volvo, Geely, Lynk & Co, and Polestar brands will all share this architecture. Both parties will also achieve technological sharing in “three-electrification” and intelligent networking, share battery packs and electric drive systems, and reduce costs through joint procurement.
In the area of cutting-edge autonomous driving technology, both parties will jointly develop a highly automated driving solution based on their existing research and development results and experience. The automotive software technology development company Zenseact, owned by Volvo Cars, will take the lead in the project.
Both parties will continue to deepen their collaboration in sales channels and after-sales service to achieve resource complementarity. Lynk & Co, which is jointly owned, was officially announced to enter Europe at the end of last year, and it will further utilize Volvo’s overseas channel resources.
To promote their collaboration, Geely Automobile and Volvo Car will also establish a new coordination and management mechanism to ensure the efficient and smooth progress of each project.🔗Source: Geely Holding Group
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email firstname.lastname@example.org.