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Volvo plans for technology sharing with Geelys Lynk Co

Volvo plans for technology sharing with Geelys Lynk Co
Santosh Nair Santosh Nair Friday 21 July 2017, 15:22 PM

Volvo has disclosed its intent to share their car technology with Lynk & Co, a brand that’s also owned by Geely – the parent company.

Lynk & Co was established by Geely in 2016, and this venture will allow the Volvo brand to share their vehicle architecture and engine tech for a more lucrative business model. Sources suggest that higher volumes of common components will bring down material costs, as these can now be jointly sourced.

Also, with better resources at their disposal, Volvo R&D can then focus on speeding up the introduction of the electric vehicles and the allied components in their fleet. Ever since Geely took over the Volvo brand, the company has been successful in competing with brands like Mercedes-Benz, Jaguar and BMW.

This year, thanks in particular to their sales in in European markets and China, the brand is experiencing an increment in profits by 21 per cent. Geely Chairman, Li Shufu, said, "We will unlock significant benefits across our portfolio by sharing both technologies and next-generation vehicle architectures. I am confident these synergies can be achieved while preserving the separate identities and strategic autonomy of our different automotive brands."

 

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