Volvo Car Co., Ltd. and Geely Automobile Holding Co., Ltd. jointly announced that the two sides have reached the best merger plan. While maintaining their existing independent company structure and achieving their strategic objectives, we will continue to expand cooperation areas, deepen cooperation in automotive electrification, intelligence, networking and sharing, and give play to synergy.
According to the content of the cooperation consensus, Geely Automobile and Volvo car will focus on the new four modernizations forward-looking technology of automobile, and carry out merger and cooperation in the business fields of powertrain, three electric technology and highly automatic driving, so as to continuously promote scientific and technological innovation. The two sides merged the powertrain business in the form of equity merger to form a new company, focusing on the development of a new generation of dual motor hybrid system and efficient internal combustion engine. In addition to continuing to supply goods to both parties, it also provides products and services to third-party automobile companies. The company plans to be operational by the end of the year.
In the field of intelligent electric vehicles, on the basis of sharing the vast sea and spa2 electric vehicle architecture, the two sides have started the joint development of the next generation of pure electric exclusive modular architecture, realizing the sharing of core technical achievements and large-scale advantages. Volvo, Geely and fast-growing brands like linker and polar star will all share the framework. The two sides will also share technology in the three power and intelligent networking, share battery packs and electric drive systems, and reduce costs through joint procurement.
The two sides said that this will further enhance Geely's new energy R & D strength and provide support and guarantee for Geely to become a new four modernizations automobile company.
In the field of advanced automatic driving technology, the two sides will, based on their existing R & D achievements and experience, take the lead of zenseact, an automatic driving software technology development company of Volvo cars, to jointly develop the world's leading high automatic driving solutions.
The two sides will continue to deepen the cooperation in the field of sales channels and after-sales service, and realize complementary resources. Geely Automobile and Volvo said that the joint venture Lingke automobile has officially announced its entry into Europe at the end of 2020, and Lingke will make full use of Volvo's overseas channel resources to gradually serve global users.
The two sides said that through the move, existing stakeholders and potential investors of Volvo and Geely can respectively assess the strategy, performance, financial risks and returns of the two companies and make more flexible and effective investment decisions. Volvo has the opportunity to explore various options in the capital market in the future.
CEO and President of Geely Automobile Group: "Geely Automobile is looking forward to establishing a closer partnership with Volvo, accelerating the global layout of Geely Automobile, and developing a new generation of intelligent electric vehicles and related travel services. We look forward to creating the ultimate experience for users through strategic cooperation in collaborative development, sharing of core technologies and frontier areas of autonomous driving. "
Hanken Samuelson, President and CEO of Volvo car group, said: "I am very glad to have further cooperation with Geely. After extensive evaluation and detailed study of various schemes, we have reached a consensus that the current merger and cooperation scheme is the best way to strengthen cooperation, ensure sustainable growth, and achieve the maximum synergy effect in multiple fields such as powertrain. "
The chairman of Geely Holding Group expressed support for the merger plan and the cooperation consensus: "at present, the global automobile industry is facing profound changes, and we must seek to open up, cooperate, and unite. This time, Geely and Volvo will further integrate their business and establish a closer strategic synergy, which will achieve the best merger effect. This will create two more powerful companies in the rapidly changing field of automotive technology and travel services, create a new development pattern, and continue to lead the development of the industry. "
Geely Automobile and Volvo car jointly said that in order to promote the above cooperation, the two sides will also establish a new coordination and management mechanism to ensure the efficient and smooth development of various projects.