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Volvo to now share its car tech with Lynk & Co

July 21, 2017, 12:52 PM IST by Santosh Nair
Volvo to now share its car tech with Lynk & Co

Volvo has announced its plans to share vehicle technology with Lynk & Co, a brand that’s also owned by their parent company, Geely. With this new venture, Volvo, Geely and Lynk & Co (a brand established in 2016) are expected to share Volvo’s engine technology and vehicle architecture to make the business more profitable.

Volvo told reporters that the deal would give Volvo better R&D resources to help speed up the introduction of new technologies such as electric mobility and the associated components. Most importantly, reports claim that the agreement can lower material costs since there will be higher volumes for the common components, and these can be jointly sourced.

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."

Ever since the Geely group bought Volvo from Ford in 2010, the brand has been successful with its onslaught against rivals such as BMW, Merc and Jaguar. It needs to be especially noted that the increase in sales of Volvo cars in European markets and China have driven their profits up by 21 percent.



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