Volvo and Geely agree to deepen their collaboration

Volvo Cars and Geely Auto have agreed on a wide-ranging collaboration that will maximise the strengths of the Swedish and Chinese automotive groups, delivering synergies in powertrains, sharing of electric vehicle architecture, joint procurement, autonomous drive technologies and aftersales.

This deeper collaboration will enable existing stakeholders and potential new investors in Volvo and Geely to value their respective standalone strategies, performance, financial exposure and returns. Both companies will also have the opportunity to explore capital market options.

Volvo and Geely confirmed the combination of their existing powertrain operations into a new standalone company. The company, expected to become operational this year, and will provide internal combustion engines, transmissions, and next generation dual-motor hybrid systems for use by both Volvo and Geely, as well as other automobile manufacturers.

Through the collaboration, Volvo and Geely will focus on the development and sourcing of next generation technologies, from connectivity and autonomous drive to car sharing and electrification.

Volvo and Geely both plan to share and jointly source batteries, electric motors and connectivity solutions that will generate valuable synergies. This will include the joint development of a world-leading autonomous driving solution under the lead of Zenseact, Volvo Cars autonomous driving software development company.

Volvo and Geely will also share the new SEA and SPA2 electric architectures among their brands, having already launched combined efforts to drive speed and efficiencies in the development of hardware and software for the next generation world-leading modular EV architectures.

Intended sharing of platforms and architectures between the companies will drive additional synergies and allow for an expansion of product portfolios across the Volvo Cars, Geely, Lynk & Co and Polestar brands, and external partners. Leveraging Volvo's existing distribution and service network, both companies will also collaborate on the global expansion of the jointly owned Lynk & Co brand.