After a big game, Geely and Volvo set up two joint ventures in succession.

[Global Network Auto Report] On August 4, 2017, Zhejiang Geely Holding Group and Volvo Car officially signed an agreement at Geely Automobile Hangzhou Bay R&D Center to establish a technology joint venture company. The new company will share cutting-edge technologies in the fields of vehicle architecture technology, efficient and clean powertrain and joint procurement of parts through mutual authorization according to the share ratio of 50:50. Li Shufu, Chairman of Geely Holding Group; Hanken samuelson, President and CEO of Volvo Car Group; An Conghui, President and CEO of Geely Automobile Group; Feng Qingfeng, Vice President and CTO of Geely Automobile Group; He Ruian, Senior Vice President and CTO of Volvo Car Group, attended the signing ceremony.

Lars Deng, former senior vice president of Volvo Car Group and CEO of Asia Pacific, was appointed as the chairman of the joint venture company on the same day.

It is reported that the technology joint venture company is tentatively named "Ningbo Time-Space Equation Technology Co., Ltd." and its headquarters is located in Hangzhou Bay New District, Ningbo. The technology joint venture company will be jointly operated by Geely Automobile and Volvo Automobile, sharing Volvo SPA platform and four-cylinder engine, as well as the latest technologies such as Geely CMA basic module architecture and 7DCT transmission.

In addition, the two parties will jointly develop the next generation of pure electric vehicle platform technology, and realize the cooperation among Volvo Cars, Geely Cars and Lectra Cars through technology sharing and joint procurement, thus promoting the common development of the brands.

In this regard, Li Shufu, Chairman of Geely Holding Group, said: "The cooperation within Geely Holding Group is entering a new stage, which is the only way for us to grow into a multinational automobile group with a multi-brand matrix. Through joint development, sharing of cutting-edge technologies and joint procurement, all brands under the company will better achieve scale effect while maintaining unique positioning and differentiated configuration, and meet the needs of users in different market segments according to their respective standards and characteristics. "

Hanken samuelson, President and CEO of Volvo Cars, is full of expectations for future cooperation: "Joint R&D and procurement across brands within the same group has become the practice of the automobile industry. We are very happy to reach a new technical cooperation agreement with Geely, and the development of Volvo’s next-generation electric vehicle technology has brought great help. "

An Conghui, President and CEO of Geely Automobile Group, said: "On the basis of jointly developing CMA basic module architecture and building the brand of Lectra, Geely and Volvo will continue to deepen technical cooperation and fully share resources, thus creating a broader space for the two companies to continuously enhance their core competitiveness and achieve sustainable development. This has provided strong support for us to achieve the strategic goal of’ producing and selling 2 million vehicles by 2020 and entering the top ten auto companies in the world’. "

On the same day, Zhejiang Geely Holding Group, Geely Automobile Holding Co., Ltd. and Volvo Car Group formally signed an agreement in the Hangzhou Bay R&D Center of Geely Automobile to set up a joint venture company of Lexus Automobile. After the establishment of the new company, Geely Automobile will own 50% of the shares of Lexus, Volvo Automobile will own 30% of the shares and Geely Holding Group will own 20% of the shares. On the same day, the members of the board of directors of Link Joint Venture were also announced: Mr. An Conghui, Mr. Hanken samuelson, Mr. Li Donghui and Mr. Feng Qingfeng served as directors; Mr. An Conghui is the chairman.

Link is a brand-new high-end brand developed for global urban consumer groups, which improves the brand portfolio and market coverage of Geely Holding Group, and is an important strategic supplement after Volvo Cars are deployed in the luxury car market and Geely Cars are deployed in the mainstream car market.

Since it was released in Berlin in October last year, Lectra has won great attention in the global automobile market with its leading technology in Europe, world-class quality and brand concept of individuality, openness and interconnection.

On the eve of the Shanghai Auto Show in April this year, the Lectra brand made a stunning appearance in the China market, and its Lectra 01 quasi-production car and 03 concept car were launched simultaneously. 01 production model is expected to take the lead in listing in China in the fourth quarter of this year.

Link brand originated from the brand-new CMA basic module architecture led by Volvo Car and jointly developed by Volvo Car and Geely Automobile. CMA is extremely flexible and malleable, suitable for various body forms and sizes, and compatible with various powertrains. Volvo Cars will develop a new generation of 40 series products based on CMA, and the future Lectra brand will also receive technical and commercial support from Volvo, including the world-leading SPA platform and powertrain.

Mr. An Conghui, President and CEO of Geely Automobile Group, said, "We look forward to further cooperation with Volvo, whose technical expertise will benefit Geely Automobile and Link Automobile. This will be a win-win cooperation. We will form scale effect and expand market space through joint development, technology sharing and joint procurement, so as to realize the sustainable development of Geely and Volvo. In the future, as a joint venture brand of Geely Automobile, Volvo Automobile and Geely Holding Group, Link will surely usher in a better future driven by the advantages of technology, resources and cost of all parties. "

Hanken samuelson, President and CEO of Volvo Cars, said: "We are very happy to be a shareholder in Lectra. Lectra’s unique brand positioning and business model will complement Geely and Volvo Cars, and we will spare no effort to support the development of Lectra."

It is reported that the Lexus automobile sales company has been established, and the channel construction work has been carried out in an all-round way, and the "Lexus space" and "Lexus center" models have been innovatively established to complement each other. Linke Space provides exhibition and sales functions in large-scale urban commercial centers, which has better drainage and brand awareness. The Link Center has the functions of displaying, selling, after-sales service and other traditional automobile 4S stores. It is estimated that there will be 100 stores by the end of this year, covering major consumer markets.