In 2010, Volvo Car Corporation was sold by Ford Motor Company to the Chinese holding group, Geely. Since then, the two brands have worked rather independently of each other but that might soon change. Recently, an official Memorandum of Understanding was signed between the companies to further vehicle development. The main folks in charge of Geely and Volvo met together in Shanghai to sign the agreement and it won’t be long until re-branded Volvos are rolling around the streets of China.
“It is the intention of Geely to fully utilize available technologies to develop products that will enrich our product portfolio and create competitive advantages,” said An Conghui, President and CEO of Geely Holding Group. The main goal of the Memorandum of Understanding is to transfer existing vehicles and their technologies to a new brand within the Geely group. In order to strengthen the co-operations between the Swedish and Chinese companies, Volvo will offer cars and innovative features to the rapidly growing car market inside China. Anything from engines, electrified powertrains and full small cars could find their way out of Europe to Geely. Stefan Jacoby, President and CEO of Volvo Car Corporation said, “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.”