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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Volvo > all
Lynk & co > all
Geely > all
Tank is coming to China & Malaysia ;D
Proton owez outdated tech; 1st Saga, Tiara, Juara, Accordana & later Boyue.
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Auto compatibility, and safety kit includes lane departure warning and adaptive cruise control (ACC)” – are not outdated.
2 years later? It’s outdated AF
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
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.
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..
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.