According to US media reports on July 20, Geely Holdings announced that it will establish a joint venture with Geely Automobile and Volvo to produce electric vehicles. At that time, Volvo, Geely and Lectra will share the automotive platform and engine technology through an interactive licensing agreement to accelerate the development of next-generation electric vehicle technology.
Geely Auto, Geely Holdings and Volvo hold 50% of the shares in the new joint venture. Its headquarters is in China and its branch is in Gothenburg, Sweden. Volvo CEO Häkan Samuelsson said that the sharing of knowledge and technology in the automotive industry is very common, and this is what Volvo is taking.
At present, Volvo and Geely have shared platforms, and their CMA platform has been applied to the Volvo 40 Series and the Lectra. The two companies said in a statement that they will share and develop automotive platforms and other technologies based on cost sharing agreements in the future. Leading R&D companies will hold technology patents, while other companies can share the technology through licenses, with the aim of reducing overall R&D costs.
The two companies have not yet announced the date of the formal establishment of the joint venture.
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