Volvo Car Corporation has announced the signing of a Memorandum of Understanding (MoU) with Zhejiang Geely to explore further co-operation between the companies.
The focus of the MoU is the transfer of existing vehicle technologies in order to establish a new brand within the Geely Group.
An Conghui, President and CEO of Geely Holding Group and Stefan Jacoby, President and CEO of Volvo Car Corporation signed the MoU in Shanghai on March 9. They agreed that the companies need to strengthen their co-operations to meet the intensified competition in the global auto industry and to satisfy customers' growing demands. Areas that will be discussed for further co-operation are small engines, a small car platform and electrification projects.
Li Shufu, Chairman of Geely Holding Group, said: "It is strategically imperative for us to unlock the synergies within the Group, still enhancing our different brands. The MoU signed today marks a solid first step in that direction."
An Conghui said at the ceremony: "It is the intention of Geely to fully utilize available technologies to develop products that will enrich our product portfolio and create competitive advantages."
"This is an initiative which is set to create additional value for both companies. It will support us in realizing the aspirations to make China our second home market," said Stefan Jacoby.