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