Volvo to set up joint venture tech company with Geely to share platforms, engines; buys stake in Lynk & Co

Volvo to set up joint venture tech company with Geely to share platforms, engines; buys stake in Lynk & Co

It’s been seven years since Volvo was bought over by Geely, but the two companies are finally coming together to facilitate greater technology sharing between each other. Plans have been announced for a new joint venture technology company, aimed to deepen synergies and provide economies of scale that will allow a more rapid development of next-generation electric vehicle technology.

The signed Memorandum of Understanding (MoU) states that Volvo, Geely and the latter’s Lynk & Co startup will share vehicle architecture and engine technologies via cross-licensing agreements managed by the new company, owned 50:50 by Volvo and Geely. It is said that the brands will also deepen cooperation through the common sourcing of components and the reduction of procurement costs.

As such, licence agreements will allow Volvo, Geely and Lynk & Co to use each other’s technologies, although the intellectual property rights will remain with the company that originally developed it. The companies already share the new Compact Modular Architecture (CMA), which will be used on Volvo’s upcoming 40 Series cars and Lynk & Co models.

In the future, modular vehicle architectures and other tech will be shared and developed based on cost sharing agreements, reducing overall development costs. The collaboration is expected to be expanded later on to include electrified vehicle components such as battery cells, motors and charging systems, in order to maximise synergies across the greater Geely group.

Volvo has also announced that it will purchase a significant minority share in Lynk & Co, reflecting the latter’s use of Volvo technology both now and in the future.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • tokmoh. on Jul 21, 2017 at 11:13 am

    Volvo > all
    Lynk & co > all
    Geely > all

    Like or Dislike: Thumb up 4 Thumb down 9
  • karam singh on Jul 21, 2017 at 11:21 am

    Tank is coming to China & Malaysia ;D

    Like or Dislike: Thumb up 1 Thumb down 1
  • Motorhead on Jul 21, 2017 at 12:28 pm

    Proton owez outdated tech; 1st Saga, Tiara, Juara, Accordana & later Boyue.

    Like or Dislike: Thumb up 2 Thumb down 7
    • Err “eight-inch display screen, Apple CarPlay/Android Auto compatibility, and safety kit includes lane departure warning and adaptive cruise control (ACC)” – are not outdated.

      Like or Dislike: Thumb up 1 Thumb down 1
  • John Mansfield on Jul 21, 2017 at 1:09 pm

    From a Malaysian perspective, it will be interesting to see what kind of a deal DRB-Hicom can cut with its minority shareholder Geely to use this technology. When Proton was in bed with Mitsibushi I believe it was a commercial licencing agreement.
    Lotus being majority owned might benefit also…
    John Mansfield

    Like or Dislike: Thumb up 0 Thumb down 0
    • Silthice on Jul 21, 2017 at 2:54 pm

      DRB don’t care about Proton in the first place. They are very happy to dispose 49.9% of Proton share to Geely and get Shah Alam land from Proton for free. Meanwhile the DRB owner get 49% of Lotus share. Proton only going to get outdated technology by the time Boyue assembled two years from now and Geely by that time will have a new version of Boyue.
      Proton should have gone for A-segment compact car first to capture the market that Savvy left long time ago. Unfortunately, Geely doesn’t really bother about Proton at all.

      Like or Dislike: Thumb up 4 Thumb down 1
  • Petrodollar on Jul 21, 2017 at 11:10 pm

    Proton dipandang sepi.. Totally ignored by its share partner.. I guess Proton is just a donkey with cart carrying loads for Geely to penetrate this Asean market. Pity u..

    Like or Dislike: Thumb up 3 Thumb down 0
  • Clowns at Proton must be having emergency meeting thinking that they are a force to be reckoned with thus will be invited to join them.

    Like or Dislike: Thumb up 4 Thumb down 0
 

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