Volvo and Geely Auto are to expand their tech-sharing partnership – but a total merger is off the table.
The two companies – which are both owned by Geely Holding Group – revealed last February that they were considering a merger.
Now, though, they’re saying they are going to stay as separate entities as they increase co-operation.
The combination of their existing engine operations will be centralised into a standalone company as well, providing internal combustion engines, gearboxes and dual-motor hybrid systems for both.
They already share many platforms and vehicle architectures, and even collaborated on creating the Polestar plus Lynk & Co brands. The two will work together on expanding Lynk globally.
Håkan Samuelsson, president and CEO of Volvo Cars, said: ‘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.’
It will also see the two companies focus on developing and finding new technologies, including connectivity and autonomous systems. They will share and jointly source batteries and electric motors, too.
Geely Auto CEO and president An Conghui said: ‘Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses.
‘This will enable Geely Auto to accelerate its global expansion, to capitalise on our strengths in China and develop a new generation of world-class new-energy vehicles and associated mobility services.’
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