Volvo, Geely, and Lynk Sharing Technology Supporting Electric Vehicles

Volvo and parent company Zhejiang Geely Holding are forging a new joint venture to share technology and speed up next-generation vehicle electrification.

Separately, Volvo announced it will take a “significant” minority share in sibling brand Lynk & CO. The startup Geely subsidiary will tap into Volvo’s vehicle technology and dealers as it readies for a 2019 sales launch in the European and U.S. markets.

One idea behind the moves is to synergize operations into economies of scale for greater profitability by collectively sourcing components and cutting procurement costs.

A second aspect is to speed up new vehicle launches through shared technology and resources already in place such as dealer networks.

“Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting,” said Håkan Samuelsson, Volvo’s president and chief executive. “This planned collaboration will strengthen Volvo’s ability to develop next generation electrified cars.”

One of the shared technologies is Compact Modular Architecture (CMA) co-developed by Volvo and Geely Auto. CMA will be used in Volvo’s upcoming 40 series cars and in Lynk & CO vehicles. These include Lynk’s 01 crossover and 03 sedan.

Intellectual property rights for the shared technology will still belong to whichever company developed it. The Geely brands will be set up license agreements to utilize the patented technology.

Zhejiang Geely will own half of Lynk & CO. The other 50 percent will be divided between the Geely and Volvo brands. Volvo’s chief said the actual percentage that each brand will hold still needs to be worked out.

The transaction still requires regulatory approvals, which are expected in August.

Volvo’s marketing chief Alain Visser last month said it was “technically possible” to build Lynk & CO vehicles at Volvo’s factory in Ghent, Belgium. That’s the assembly plant where models are being built with CMA architecture, one of them being the Volvo XC40 compact SUV.

SEE ALSO:  Volvo Ready To Launch China-Manufactured Electric Car

Volvo expects that the overall Geely brand collaboration will one day cover electrified vehicle components. That could include battery cells, e-motors, and charging systems to maximize synergies and share technology across the group.

In April at the Shanghai auto show, Volvo confirmed that an EV would be built on the CMA platform in China. The company wouldn’t reveal details on whether it would its own new model or built off another Volvo car, such as the 40 series.

The Volvo Concept 40.1 and 40.2 are shown in the photo above.


More Hybrid News...