Volvo Cars and Geely Auto combine powertrain operations after merger plan scrapped
Published: Feb 24, 2021 09:51 PM

File photo taken on May 24, 2017 shows a worker walks past newly-assembled cars at the Volvo Car Gent in Ghent, Belgium. Volvo Car Gent, the second largest Volvo assembly line except that in Sweden, was purchased by the Chinese car manufacturer Geely Holding Group in 2010.Photo:Xinhua

The Chinese private auto company, Geely Auto, and Sweden's Volvo Cars agreed on a broad collaboration for synergies, including combining their powertrain operations with a focus on next-generation hybrid systems and internal combustion engines, Geely said on late Wednesday.

The plan came after a merger plan was scrapped, according to media reports.

Collaboration will include operations in powertrains, sharing of electric vehicle architecture, joint procurement, autonomous driving technologies and aftersales.

The two companies combine powertrain operations in a new company focused on next-generation hybrid systems and internal combustion engines, according to the press release sent by Geely to the Global Times on Wednesday.

The two will expand the use of shared modular architectures for electric vehicles.

Geely also announced that Lynk & Co, a brand it jointly developed with Volvo, will expand globally by utilizing Volvo's distribution and service network.

The two companies concluded that the best option was to agree in a deeper cooperation while preserving their existing separate corporate.

Geely Holding said in February last year that it intended to float the Volvo car business it owned.
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