Volvo Cars and Geely Auto have decided to scrap their merger plans and instead chose to deepen collaboration. Volvo said in a press release that the collaboration will see both automakers pool powertrain, EV architecture, joint procurement, autonomous drive technologies and aftersales to drive savings.
Last December, the automakers delayed their tie-up plans after Geely sought to get itself listed on the Shanghai New Star Market. Due to the listing process, Geely was prohibited from making changes to its capital structure.
Now, after a detailed review of options, Volvo president and CEO, Hakan Samuelsson said the “collaboration model between two standalone companies is the best way to secure continued growth and at the same time achieve technological synergies in many areas.” Samuelsson added that a full merger would have “slowed down” the businesses, and both companies “would like to avoid any type of loss of momentum when people start to talk about internal power issues,” the Financial Times reported.
This way, Volvo highlighted that existing stakeholders and potential new investors in both companies can still value their respective standalone strategies, performance, financial exposure and returns. “We will also have the opportunity to explore capital market options,” Volvo said.
The collaboration will see Geely and Volvo deliver synergies regarding the internal combustion engine, transmission, and next-generation dual-motor hybrid systems. These components will be shared between the two, and potentially other vehicle manufacturers as well, such as Proton and Lotus.
Other aspects of the collaboration include the development and sourcing of next-generation batteries, electric motors, connectivity solutions, and autonomous driving solutions. Leading the development of self-driving systems is Zenseact, Volvo Cars’ software development company. Each company will lead its respective area of expertise – Volvo will focus on electrification for large and premium cars, while Geely develops the ICE and hybrid business.
The new SEA (Sustainable Experience Architecture, world’s first open-source EV platform) and SPA2 electric architectures will be shared as well, allowing for the expansion of product portfolios across Volvo Cars, Geely, Lynk & Co, Polestar, and even external partners. Volvo’s existing distribution and service network will also be used to expand the Lynk & Co brand globally.
Geely Auto president and CEO, An Conghui said: “Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses. This will enable Geely Auto to accelerate its global expansion, to capitalise on our strengths in China and develop a new generation of world-class new energy vehicles and associated mobility services.”
The collaboration was also welcomed by parent company Geely Holding chairman, Li Shufu. “As shareholders and portfolio-managers of both wholly-owned and listed companies, Geely Holding sees significant benefits from deeper partnerships and alliances whilst maintaining independence,” he said.
“We are encouraged by the potential synergies and growth opportunities created by this collaboration, which will create two even stronger globally competitive companies in the rapidly changing world of automotive technology and new mobility services.”
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Geely, Volvo P1 > all
4 years of geely partnership and we have yet to see meaningful collaboration apart from 2 rebadged models and some vendor sharing.
Even during their bad times, proton managed to produce home grown cars like iriz and preve. But now with geely still no all new product. Only excuses like the BMA n CMA being too expensive. What is this? Even perodua gets the latest DNGA from daihatsu.
For now proton is like a mainland vassal, with no will of its own. It should be independent like volvo and lotus.
Whenever there is technologies sharing or development related to GEELY or Volvo, there are people’s always start to dream this and that…but they forget that Geely is not controlling Proton but DRB. So if you are GEELY, will you share all the good stuffs in a company which you cannot control?
Geely-Proton partnership is only 3 years old. Do you trust your 3 year old to be playing with fire? OTOH we have long time partnerships with the other local car brand for decades and still they are not entrusted to come out with anything fully local. I wonder which is more embarrassing?
They said in their original plan that they will be releasing a new model every year. UNFORTUNATELY it seems like it would be all rebadge cars, though they did say that there will be indigenous vehicles made as well. Nevertheless it is shameful, 35+ years of a protected market (insane taxes on non-Malaysian cars) and Proton is still in such position.
Copy paste: “It was hilarious seeing Malaysians all impressed by the Perodua Activa with a whopping 94 horsepower! LOL, meanwhile in Canada or whoever you have teenagers driving 300 horsepower Nissan Altimas.”
28 years of Daihatsu partnership and we have yet to see meaningful collaboration apart from all the rebadged models from start and some vendor sharing.
Even during their good times, Perodua have no guts to come out with a fully home grown model. Only excuses like riding on DNGA platform and vague directions like 3.0 Transformation Plan. What is this? Hellooo DNGA/TNGA is 5 years old ady, this is nothing new. Even Proton got brand new high tech BMA platform from Geely with VEA engine developed with Volvo.
Until today Perodua is like a Jap dumping ground for old tech, with no will of its own. It only knows to rebadge until kingdom come. No pride at all for a so-called national carmaker.
Land, sea, air and aerospace , all China conquer step by step. we in bolehland just watching and watching can’t do amything. All made in china
Proton remains the dominant contributor to feed collaboration with Geely. Not just the grille,
Finally, another article other than on Ativa.
Quite fed-up with non-stop report of a car that has not even been launched. Repeating the same stuff over and over and over. Look, a I found a rim design on the ativa – kaboom… a new article.
Perodua did a fantastic PR job, also pushing their SA to flood the comments sections with non-stop praised for a car yet to be launched. good marketing i must say.
Troll marketing also helps to keep some websites afloat during covid. So its a win-win for some.
the perodua ativa will be just like another x50 overhype and people who really want to buy the car will need to wait a long time to get it
These days the automotive business is very competitive that automotive companies would merge or share/buy platform/technology or rebadge in order to survive.