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Volvo agrees to transfer tech to Chinese parent Geely

Posted Dec 11th 2012 6:31PM

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Volvo emblem on grille

Following the acquisition of Volvo by China's Zhejiang Geely Holding Group in 2010, we definitely saw this news coming. The two companies have signed an agreement that will give Chinese automaker Geely access to key technologies developed by Volvo, and in turn, the deal could help the Swedish automaker lower its production costs.

As a part of the "technological cooperation agreements" signed by both companies, Automotive News China reports that Geely will be able to tap Volvo for three much-needed technologies, including the use of a midsize platform, Volvo's proven safety innovations and interior air quality systems. The latter two technologies are important to improve the crashworthiness of Geely's cars, along with helping isolate vehicle occupants from China's often severe air pollution. The report says that Volvo tech will likely be used on a premium car brand that Geely is expected to create.

Volvo, on the other hand, is to benefit from the "local market exploration experience and cost control experience" of Zhejiang Geely Holding Group, which is technical way of saying that Volvo will be able reduce its costs by tapping into Geely's established supply chain.

2013 Volvo V60 Plug-In Hybrid Crash Tests

News Source: Automotive News - sub. req.

Image Credit: Copyright 2012 John Neff / AOL

Category: China, Volvo, Geely, Technology

Tags: china, chinese cars, geely, volvo, volvo cars, volvo china, zhejiang geely holding group

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FastestOpel

well i guess volve is finished

December 11 2012 at 7:44 PM Report abuse rate up rate down Reply