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Volvo, Geely Create Joint Venture Aimed at EV Market

New deal helps reduce development costs.

by on Jul.21, 2017

Volvo CEO Hakan Samuelsson expects development and production costs to drop with the new joint venture with Geely and Lynk.

With its profits climbing 21.4% in the first half of 2017, Volvo Cars is planning to set up a new joint venture technology company with Geely Holding. The new deal is designed to reduce development and production costs.

Volvo’s venture with the Chinese car group is to “share existing and future technology, deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next generation electrified vehicle technology,” the two companies said in a joint statement.

Global Auto News!

Volvo Cars, Geely Auto and Lynk & Co. will share vehicle architecture and engine technologies through cross licensing arrangements of technologies managed by the new joint venture. The new partners will also commonly sourcing components cutting procurement costs. (more…)