Volvo, its parent company Geely Holding and Lynk & Co. have announced plans for a new joint venture, which will see the three companies share platforms and engine technologies for electric cars. The new joint venture will be 50/50 owned by Volvo and Geely Holding.
Volvo and Geely already share technology, especially with the new Compact Modular Architecture, which will be used by Volvo’s upcoming 40 series cars and Lynk & Co. It is expected that the collaboration will extend in future to also cover electrified vehicle components such as battery cells, e-motors and charging systems in order to maximize synergies across the group.
In addition to the new partnership between the three companies, Volvo is also going to take a significant minority stake in Lynk & Co.
Li Shufu, chairman of Geely Holding said: “We will unlock significant benefits across our portfolio by sharing both technologies and next-generation vehicle architectures. I am confident these synergies can be achieved while preserving the separate identities and strategic autonomy of our different automotive brands.”