Volvo announced it will be furthering its partnership with Chinese car manufacturer Geely, in an effort to develop new electric car technology.
Earlier this year Volvo said that all new cars the company sold from 2019 will be electric or a hybrid. Thus, the joint venture they’ve set out will help achieve this goal.
Geely holding company, owner of London Taxi Company and Lotus, and Volvo will also join forces with electric car brand Lynk & Co which is also owned by the Zhejiang Geely company.
The three companies will join together to share and develop technologies between them to ensure the vehicles have the best and most efficient technology.
The venture arose as a bid to produce electric cars in a more cost effective way. Carmakers are increasingly feeling pressure to invest in the latest technologies to compete within the market, such as self-driving and electric cars.
Zhejiang Geely Chairman Li Shufu said in a statement, “We will unlock significant benefits across our portfolio, by sharing both technologies and next-generation vehicle architectures.”
Under the agreement terms, the company who leads the development of the products will own the technology and the other parties will access it through a licence by the joint venture company, reducing overall development costs.
Volvo hopes to develop its links with the two companies and between the three of them they intend to share engine technologies and vehicle architecture as well as purchasing
the components together. The company already shares some aspects of the technology with Geely, using the same manufacturing system in China.
The trio will also share their knowledge of electric motors, battery cells and recharging systems in the hope to cutting the costs of developing expensive new technologies.
Hakan Samuelsson, Volvo chief executive, said: “Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting.
“This planned collaboration will strengthen Volvo’s ability to develop next generation electrified cars.”
He added: “This will give us significant cost saving in sourcing of components, but it also is a factor in electric development as we will have more resources and more engineers to be able to have the same job.”