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.