Volvo and Geely have decided to deepen their technical collaboration.
The move will allow both firms to secure new growth opportunities in their respective markets and meet evolving industry challenges, while preserving their existing separate corporate structures.
Through the collaboration, the two manufacturers will focus on the development and sourcing of next-generation technologies, from connectivity and autonomous drives to car sharing and electrification.
They are also planning to share and jointly source for batteries and electric motors. Also on the cards is the joint development of new connectivity solutions, as well as a “world-leading autonomous driving solution”.
As part of the new collaboration, the new SEA and SPA2 electric architectures will also be shared among their brands. This move will drive additional synergies and allow for an expansion of product portfolios across the Volvo Cars, Geely, Lynk & Co and Polestar brands, as well as external partners.
Additionally, Volvo Cars and Geely Auto have confirmed that they are combining their existing powertrain operations into a new, standalone company.
The company is expected to become operational this year. The new firm will provide internal combustion engines, transmissions, and next-generation dual-motor hybrid systems for use by both companies as well as other automobile manufacturers.
The two companies will also collaborate on the global expansion of the jointly owned Lynk & Co brand.