Volvo Cars and its owner, Geely Holdings, have finalized plans for future technologies that would allow them to move rapidly on developing the next generation of electrified vehicles, and to create the Lynk & Co company.
The deal will also see the formation of GV Automobile Technology to develop the technology to allow the rapid deployment of the next generation of electric vehicles, in accordance to Volvo’s recent announcement that it would only market electrified vehicles beyond 2019
An equally owned company of Volvo Cars and Geely Holdings, GV Automobile Technology will be headquartered in China with a subsidiary housed in Gothenburg, Sweden. It will be helmed by Lars Danielson, former Senior Vice President of Volvo Cars and CEO of Volvo Cars Asia Pacific, as its chairman.
The separate Lynk & Co company will be chaired by An Cong Hui, President and CEO of Geely Auto, with Håkan Samuelsson, President and CEO of Volvo Cars, serving on the board, as will Daniel Li, Executive Vice President and CFO of Geely Holding, and Feng Qing Feng, Group Vice President and CTO of Geely Auto. The three companies share ownership of Lynk & Co, with Geely Auto holding 50% of shares, Volvo 30% and Geely Holding 20%.
“These joint ventures will create significant value for our automotive brands,” said Li Shufu, Chairman of Geely Holding. “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.”
With the company’s formation expected to be finalized in September 2017, Lynk & Co cars will use the Compact Modular Architecture (CMA), which will be used by Volvo’s upcoming 40-Series vehicles.
“We look forward to expanding our cooperation with LYNK & CO. It will be beneficial for both companies,” concluded Volvo’s Håkan Samuelsson.