[ET Net News Agency, 25 February 2021] Geely Automobile Holdings Limited (00175) said
after a detailed review of various combination solutions, the company and Volvo Cars have
now found the best combination solution. While maintaining their existing independent
corporate structure, the parties will carry out the following series of business
combination and collaboration.
To combine powertrain operations through equity merger in order to provide powertrain
products to the parties and to develop powertrain products and next-generation dual-motor
hybrid system (applicable to hybrid electric vehicles and plug-in hybrid electric
vehicles) for the parties. The post-merger powertrain company will commence operation this
year and will offer products and services to other automobile companies.
To jointly develop the next-generation modular electric vehicle architecture for use by
the parties, the Lynk&Co brand (an automobile brand operated by a joint venture of the
parties and their substantial shareholder, Geely Holding) and the Polestar brand (an
automobile brand operated by a joint venture of Volvo Cars and Geely Holding), on the
basis of the current sharing of two modular electric vehicle architectures, namely
Sustainable Experience Architecture (SEA) and Scalable Product Architecture 2 (SPA 2).
Also, to share technologies on electrification (including battery packs and electric drive
systems) and intelligent connectivity and carry out joint procurement to reduce costs.
To jointly develop advanced autonomous driving solution under the lead of Zenseact AB,
an autonomous driving software development company and a wholly-owned subsidiary of Volvo
Cars.
The Lynk&Co brand was officially launched in Europe at the end of last year, and will
gradually provide its service to global customers through overseas sales channels and
after-sales network of Volvo Cars. (RC)