Zhejiang Geely Holding Group (Geely) has completed the formation of two new joint ventures with Volvo Cars to co-operate on automotive technologies, purchasing and the future development of the newly-launched Lynk & Co brand. Volvo is of course a wholly-owned subsidiary of Geely, which also recently bought into Malaysia’s Proton.
Both parties signed a wide-ranging agreement in Hangzhou today to formalise the JVs, covering the strategic priorities, management teams and targeted synergies for the collaboration projects.
“These joint ventures will create significant value for our automotive brands. We aim to deliver global economies of scale by facilitating closer cooperation between our brands on shared vehicle architectures, powertrain development and electrification, while offering synergies that will enable Lynk & Co to achieve its full potential,” said Geely chairman Li Shufu.
Under the agreements announced today, a new technology JV company will be formed. GV Technology (Ningbo) Co Ltd, will be 50-50 owned by Volvo and Geely, with a headquarters in China and a subsidiary in Gothenburg, Sweden. Lars Danielson, former SVP of Volvo and CEO of Volvo Cars Asia Pacific, will become the chairman of GV Technology.
GV Technology will seek synergy benefits for all three brands through two divisions in technology and purchasing, and will make available all current vehicle architectures and powertrains from the respective companies to their partners. The partnership will cooperate on next-generation automotive technologies, and the results will be made available to brands across the Geely group.
“The JV will also generate significant synergies, shared development costs and procurement cost savings for Geely and Volvo,” Danielson said.
The other JV is for the new brand itself. The Lynk & Co JV, also signed today, will be jointly owned by Hong Kong-listed Geely Auto, Geely Holding and Volvo under a 50-20-30 share structure.
Geely Auto group CEO and president An Cong Hui will be the chairman of the Lynk & Co board in the new company, in which Feng Qing Feng, CTO of Geely Auto; Håkan Samuelsson, president and CEO of Volvo; and Daniel (Dong Hui) Li, EVP and CFO of Geely will serve as board directors.
Under the Lynk & Co JV, the recently-launched global brand will gain access to technology and business support from Volvo, including the Swedish company’s Scalable Product Architecture (SPA), its advanced modular architecture and the latest powertrain products and tech.
Alain Visser, SVP of Lynk & Co said: “Both joint ventures help Lynk & Co to establish its products as premium, innovative and high quality whilst maintaining the unique brand identity, positioning and business model.”
The two JVs represent a deepening of the collaboration between Geely and Volvo, which was acquired by the privately-owned Chinese group in 2010. Geely says that the JVs represent the first time a Chinese domestic manufacturer has signed a deal for full-technology-sharing and purchasing co-operation with a leading western brand.
When asked if Proton and Malaysia has a role to play in this, An said: “This JV has a global outlook so certainly developments with the JV will find its way to Malaysia in due course. Of course, that JV has its own timeline so it has to fit into that.”
GALLERY: Lynk & Co 01 SUV
GALLERY: Lynk & Co 03 Sedan Concept
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amazing. Geely knows what they want. They are higly focused. This is why for a young company like this, born in 1997 only, they can make USD30 billion (RM135 billion) untung in 2016
They dont believe in lepak, rilaks and minum teh
Malaysia almost 60yrsold, Malayans buck up!
High income beckons!
Lame bashing like you dun know their market is huge
dont forget how many brands are in China bro
Like Korea is very huge? And now Kia and Hyundai is a very credible and award-winning brand even in the biggest markets.
You are the lame one.
how to buck up when majority are sleeping?
With the a quarter of world population and the help of the government? Geely can hardly fail. Even Volvo the Swedish find hard time to survive.
Ohsemmm de-glorified Volvo @ harge P1..
Volvo Geely Lynko 》 All
Volvo > all
Lynk & co > all
Geely > all
Rename P1. Proton & Co,
more premiem & esklusif.
Hardly see volvo on the road. This car is not laku at all here
“Geely says that the JVs represent the first time a Chinese domestic manufacturer has signed a deal for full-technology-sharing and purchasing co-operation with a leading western brand. ”
Err.. Geely owns Volvo
Proton … kenapa tak panggil-panggil kita lagi. Takan dia tak tu design dashboard kita tu bagus sampai mitsu pun curi.
“This JV has a global outlook so certainly developments with the JV will find its way to Malaysia in DUE COURSE”. Inb4 Outdated Proton products; Tiara, Juara, Perdana, Boyue
Sad Proton was sold to thieves. Collaboration with Suzuki Honda Mitsubishi or PSA would have been wiser. They don’t respect intellectual property and I will never buy a P1 no more.
Collabo with jepunis dun have capital injection, new model injection, no factory tech injection, no plans for going into new markets, no release from “burden of taxpayer money”, nor codevelopment of new models. How is this benefits P1?
Volvo so succeed, dont jelly..
PSA is partly Chinese fyi..
So means either jual to French or jual to China, in the end still belong to China?
P1 fanbois got all wet reading this haha ha
Brand? But basher says it is car worr. Can rebadge worr. So basher is lying?
Ugly and imbalanced design. I see lots of familiar design cues from different brands, smart move, but still ugly to me. Wannabe!
Hope volvo can fix it
Janji pecah sales record, untung berganda2, bayar cukai kepada rakyat, bukan rakyat sara hidup mereka.
Where is the plans for ailing Proton?
Left to die a natural death after getting Lotus ?
Proton is left in ICU and with the mounting debt to foot , its a matter of time b4 it’s lifeline will be disconnected or go begging Govt for another “tongkat “.
Management Proton still in dream land having karipap & ais ketum !!
Do ur company tell whole world whatcha gonna do in next few years and how they gonna do it? No right? Xmasuk akal kan? Then why u ask…..
Sounds like a plan. Then why u ask…..
Sos:
https://paultan.org/2016/04/08/proton-confident-of-turnaround-with-rm1-5-bill-loan/
Thats a goal, not a plan (ie which other models they gonna use, which country to penetrate, how to penetrate it, local incentives, pricing structure, personnel, etc). Nobody will share this with outside world, and yet basher demands to know all this company secrets & strategies.
Stupid arent they?
rebadge as proton?
So here is my proof that basher says Lynk & Co is car and can be rebadged. Apalagimau?
Lynk & co macam dah nama lawyer firm. “geely” lah dengar
Good move and good for proton but choose a better brand name.