Geely cars-01

Geely will be launching a new brand come 2017, according to a report by Reuters. Based on the word of insiders, the brand is codenamed “L” while the cars will be based on a joint architecture developed with Swedish automaker, Volvo – also a subsidiary of the Chinese automaker.

Although spokesmen from both Geely and Volvo declined to comment on the development, it is understood that the brand will launch with an SUV. It will be the first model and will be based on the Compact Modular Architecture (CMA) platform, jointly developed by Zhejiang Geely Holding Group and Volvo. Meanwhile, a sedan is also said to be under development too.

According to the report, it aims to compete against Chinese-foreign venture brands and cars. One such example would be jointly developed vehicles by General Motors and SAIC Motor Corp. With the L-brand cars, Volvo will be able to focus solely on the luxury market, while Geely will compete in the domestic Chinese market, against local brands.

CMA platform side view with text

When official, the new L-brand will compete in a crowded market, which comprises at least a dozen foreign automakers and more than 20 Chinese car manufacturers, which all have multiple brands of their own. L-brand cars will reportedly be sold through Geely’s existing dealership network.

New factories will be established to produce cars for the new brand, according to insider knowledge. Upon having established a proper market in China, cars will then be exported to markets around the world, the insider revealed.

On that note, the development of the CMA platform – a smaller version of the Scaleable Product Architecture (SPA) – is part of Geely’s preparations to enter into European and US markets, according to sources. Said platform will allow all three brands – Volvo, Geely and the new L-brand – to create new models from a common base.