The two new entities will share existing and future technology and provide the economies of scale that enable both the firms to more rapidly develop next generation electrified vehicle technology.
The first of the two companies is GV Automobile Technology. It will be headquarters in Ningbo, China and will have a 50/50 ownership between the two companies.
The new company will also have a subsidiary, operating from Gothenburg, Sweden.
GV Automobile Technology will be headed by Volvo Cars former senior vice president and Volvo Cars Asia Pacific CEO Lars Danielson.
The second joint venture company that is being formed is LYNK & Co. It will be jointly owned by Volvo Cars, Geely Holding and Geely Auto.
In LYNK & Co, Volvo will hold 30% stake n the company, while Geely Auto will own 50% of the stake. The remaining 20% of the stake will be held by Geely Holding.
Geely Auto has been named LYNK & CO board chairman and Volvo Cars president and CEO Håkan Samuelsson will offer their services along with Geely Holding Executive Vice President and chief financial officer Daniel Li and Geely Auto Group vice president and chief technical officer Feng Qing Feng.
As per the Swedish automaker, the two companies have been sharing technology for some time and specifically the Compact Modular Architecture (CMA), which is now being used by Volvo Cars for the development of its yet-to-be launched smaller vehicle range, the 40 series cars.
“These joint ventures will create significant value for our automotive brands. We aim to deliver global economies of scale by facilitating closer cooperation between our brands on shared vehicle architectures, powertrain development and electrification, while offering synergies that will enable LYNK & CO to achieve its full potential,” said Li Shufu, Chairman of Geely Holding.
“We look forward to expanding our cooperation with LYNK & CO. It will be beneficial for both companies”, said Håkan Samuelsson, President and Chief Executive of Volvo Cars.
Source: Automotive Business Review, 2017
Monday Aug 7, 2017