Geely, Volvo join forces to strengthen luxury car brand LYNK & CO

Zhejiang Geely Holding Group has formed two joint ventures with Volvo Cars with the aim for better technology sharing and the strengthening of the high-end luxury car brand LYNK & CO.

The signing ceremony between Zhejiang Geely Holding Group and Volvo Cars in Ningbo, Zhejiang Province, on August 4, 2017. [Photo: yiche.com]

Geely Holding Group and Volvo Cars on Friday signed a contract to found a technology joint venture, which is temporarily named "GV Technology (Ningbo) Co. Ltd." The company is equally shared by Geely and Volvo, with each owning 50% of company shares.

The headquarters of GV Technology is located in Ningbo, Zhejiang province, while a subsidiary is to be set up in Gothenburg, Sweden. The company aims to enable Geely and Volvo to cooperate on next-generation automotive technologies.

LYNK & CO car. [Photo: yiche.com]

Geely Auto Group CEO An Conghui said the joint venture is further fuel for achieving the strategic goal of being among the top ten of world car brands.

Hkan Samuelsson, CEO of Volvo Cars, said that Volvo is the first international well-known car brand that will completely share technology with a Chinese company. "We are happy about the technological cooperation, which will benefit a lot for the development of the next generation of Volvo cars," said Samuelsson.

Meanwhile, another joint venture has also been set up with a contract signed on Friday. The LYNK & CO joint venture is owned by Geely Auto (50 percent), Geely Holding (20 percent) and Volvo Cars (30 percent), respectively.

LYNK & CO car. [Photo: yiche.com]

With the joining of Volvo Cars, the joint venture will help Geely build up high-end car brands targeting the North American and European markets.

Volvo Cars was acquired by Zhejiang Geely Holding Group in 2010 for 1.8 billion US dollars.