Volvo is linking up with other companies owned by its parent Zhejiang Geely as they look to share the burden of developing electric cars.
The move came as Volvo – which a fortnight ago said all its new cars from 2019 would be available with an electric drivetrain – reported surging revenues and profits.
The Swedish car maker was bought by Chinese billionaire Li Shufu’s Geely holding company in 2010. Acquisitive Mr Li’s stable of businesses now includes Chinese car maker Geely, electric car business Lynk & Co, Lotus, and the London Taxi Company, which earlier this month renamed itself the London Electric Vehicle Company.
Under the terms of the tie-up Volvo and Geely will establish a 50:50 joint venture to produce systems for electric cars, which will be based in China with a Swedish subsidiary.
Volvo, Geely and Lynk will share technology through the new venture and also work more closely to cut costs by sharing components and procurement.