Both are holdings of parent company Geely Holdings.
Powertrain technologies will be shared as will various other technologies.
Volvo Cars and Geely Auto are very distinct automotive companies. However, as both operate under the Geely Holdings umbrella, they will combine hybrid and ICE powertrain development, platforms, and electric-drive technologies as of now.
Another key element and priority behind this arrangement is to cut purchasing costs and to reduce expenses as a whole. By combining their existing powertrain operations under one standalone company, they will not only supply themselves but expect to provide internal combustion engines, transmissions, and next-generation dual-motor hybrid systems to other auto manufacturers such as smart.
Already, Volvo and Polestar have shared a number of components including platform and electric powertrains with impressive and convincing results. Volvo and Geely are planning to share the new SEA and SPA2 electric architectures in the near future. This will be part of the brands’ plans to create various efficiencies including the development of hardware and software for the next-generation world-leading modular EV architectures.
Håkan Samuelsson, President and CEO of Volvo Cars, said: “Having evaluated different options to realize value, we concluded jointly that a collaboration model between two standalone companies is the best way to secure continued growth and at the same time achieve technological synergies in many areas. We welcome the opportunity of further and deeper collaboration with Geely Auto.”
