Reports: Volvo agrees to transfer technology to Geely

geely-volvo

Zhejiang Geely Holding Group has signed a deal with Volvo Car Corp to allow the former to use some technologies Volvo plans to phase out over the next couple of years, Reuters reports.

According to Geely – which acquired Volvo in 2010 – three “technological cooperation agreements” have been signed between the two companies, to the effect that the Chinese carmaker would gain access to technologies such as Volvo’s mid-size vehicle platform, interior air quality and safety systems.

The agreements could enhance Geely’s vehicle engineering abilities and its exploration into overseas markets. For Volvo, this could help slash production costs by allowing the company access to Geely’s vast supply chain, increasing its competitiveness in the Middle Kingdom. A report by Automotive News China says Geely may use said technology to develop a premium car brand.

In an earlier interview with Reuters, Geely and Volvo chairman Li Shufu said of Volvo’s in-car air filtering technology: “Air pollution in China is quite severe, so we want to have that technology transferred to Geely to improve the in-car air quality of Geely cars to make it more like air you breathe in the forest.”

Reports surfaced in May of Volvo handing over the XC90 platform to Geely, apparently also to be used to develop a vehicle for its high-end sub-brand in China.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Jimmy on Dec 13, 2012 at 1:16 pm

    America Syarikat himself doesn’t want to buy over Volvo. I don’t know whether he intervenes if Volvo wants to transfer some sensitive technologies to Geely.
    How to gain back the confidence of customers?
    You can advertise that your technology is from RR, and it is made in China. Is RR made in China = original RR? What have the pekerja2 kilang kat China buat semasa membikin RR?

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  • gOOsh on Dec 14, 2012 at 9:46 am

    china got volume… that’s one of the bid reason why geely bought volvo…

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