NINGBO, Zhejiang – Geely Holding Group and Volvo Cars officially inked the contracts for their technology and LYNK & CO joint ventures at a ceremony held at Geely’s Hangzhou Bay R&D Center here on August 4.
The signing ceremony comes two weeks after Geely and Volvo Cars signed MOUs to the effect in Stockholm and exactly 8 years to the day after Geely reached the initial agreement with Ford Motor Co. to buy Volvo Cars in 2009, the final transaction of which was completed on August 2, 2010.
The formation of the two JVs is aimed at sharing existing and future technology and provides the economies of scale that will allow Geely and Volvo Cars to more rapidly develop next generation electrified vehicle technology.
The equity share of the technology JV, which will be named GV Automobile Technology (Ningbo) Co., Ltd., will be split between Geely and Volvo Cars. Lars Danielson, former senior vice president of Volvo Cars and CEO of Volvo Cars Asia Pacific, will become the Chairman of GV Technology, which will seek synergy benefits for Volvo Cars, Geely and LYNK & CO through two units controlling technology access as well as procurement.
The LYNK & CO JV will be a three-way variety with Geely Auto (the Hong Kong-listed subsidiary of Geely), Volvo Cars and Geely taking 50, 30 and 20 percent of the equity shares respectively. The international premium brand launched by Geely last October has now essentially become a “JV independent” brand. An Cong Hui, President and CEO of Geely, has been named Chairman of the Board of LYNK & CO and Håkan Samuelsson, President and CEO of Volvo Cars, will serve as board director alongside Daniel Li, Executive Vice President and CFO of Geely and Feng Qingfeng, Group Vice President and CTO of Geely.
The formation of the LYNK & CO JV is expected to be finalized in September and is subject to relevant corporate and authority approvals.
“These joint ventures will create significant value for our automotive brands. 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,” said Li Shufu, chairman of Geely.
“We look forward to expanding our cooperation with LYNK & CO. It will be beneficial for both companies,” said Samuelsson.
The LYNK & CO 01 SUV is expected to hit the Chinese market in Q4 2017.