The two joint ventures represent a deepening of the collaboration between Geely and Volvo, which was acquired by the Chinese group in 2010. They represent the first time a Chinese domestic manufacturer has signed a deal for full-technology-sharing and purchasing co-operation with a leading western brand.
Geely Auto Group CEO and president An Cong Hui said as Lynk & Co is a global brand, the marque will eventually be launched in Malaysia.
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As an example of the synergies between Volvo Cars and Lynk & Co, both the Volvo XC40 and Lynk & Co 01 will be produced at the Luqiao plant in China.
Lynk & Co 01 will be launched in China in the fourth quarter of 2017. Prices have yet to be announced. The SUV will have 1.5 and 2.0-litre turbocharged engined options, with both mated to a seven-speed dual clutch transmission.
An said Lynk & Co, a marque aimed at high-end and young consumers, has plans to produce SUVs, MPVs and sedans.
On whether Proton would benefit from the latest developments, he said it would. "These joint ventures have a global outlook so certainly developments there will find their way to Malaysia in due course."
Geely Holding bought a 49.9% stake in Proton for RM460.30mil, of which RM170mil is cash and the remaining RM290m will be in form of a transfer of the former's sports utility vehicle (SUV) platform Boyue.
The Lynk & Co 01 will have a seven-speed dual clutch transmission.
Geely Holding, China’s leading privately-owned automotive group, and Volvo, its wholly-owned Swedish subsidiary, signed the wide-ranging agreement today to formalise the joint ventures, covering the strategic priorities, management teams and targeted synergies for the collaboration projects.
“These joint ventures will create significant value for our automotive brands," said Geely Holding chairman Li Shufu.
"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.”
Under the agreements announced today, a new technology joint venture company will be formed called GV Technology (Ningbo) Co. Ltd., which will be 50-50 owned by Volvo Cars and Geely Holding and based in China with a subsidiary in Gothenburg, Sweden.
Lars Danielson, former SVP of Volvo Cars and CEO of Volvo Cars Asia Pacific, will become the chairman of GV Technology. The joint venture will seek synergy benefits for Volvo, Geely Auto and LYNK & CO through two divisions in technology and purchasing.
GV Technology, operated by Geely Auto and Volvo, will make available all current vehicle architectures and powertrains from the respective companies to their partners. The partnership will cooperate on next-generation automotive technologies.
“The JV will also generate significant synergies, shared development costs and procurement cost savings for Geely and Volvo,” said Danielson. All future architecture and technologies developed will also be made available to the joint venture under licence for brands across the Geely Holding group.
The Boyue made its first appearance in Malaysia following a signing ceremony between DRB-Hicom Bhd and Geely in Kuala Lumpur on June 23. — Bloomberg
The separate LYNK & CO joint venture, also formally signed today, will be jointly owned by Geely Auto, Geely Holding and Volvo cars under a 50-20-30 percent share structure.
Under the LYNK & CO joint venture, the recently launched global brand will gain access to technology and business support from Volvo, including the Swedish company’s Scalable Product Architecture (SPA), its advanced modular architecture and the latest powertrain products and technologies.
“We look forward to expanding our cooperation with LYNK & CO. It will be beneficial for both companies”, said Volvo Cars president and chief executive Håkan Samuelsson.
