·Geely Volvo set up a joint venture company, Lectra, can find a new way for Chinese cars
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On August 4th, at Geely Automobile Hangzhou Bay R&D Center, doubts had the most accurate answer. Geely Automobile and Volvo Car officially signed an agreement to establish a technology joint venture company. At the same time, Volvo also announced the acquisition of Lynk & Co (Lectra), the Lectra car joint venture company was established. In the future, Geely and Volvo will realize the cutting-edge technology sharing and joint parts procurement in the fields of vehicle architecture technology and high-efficiency clean powertrain through mutual authorization. This is the first time that Chinese car companies and international luxury car brands have cooperated in this way.
According to reports, the newly established technology joint venture company is tentatively named "Ningbo Space Time Equation Technology Co., Ltd.", and former senior vice president of Volvo Car Group and Asia Pacific CEO Lars Deng was appointed as the chairman of the joint venture company on the same day.
Ningbo Space Time Equation Technology Co., Ltd. will be operated by Geely Automobile and Volvo Cars, sharing the Volvo SPA platform and four-cylinder engine, as well as the latest technologies such as Geely CMA basic module architecture and 7DCT transmission. The two parties will jointly develop the next generation of pure electric vehicle platform technology, jointly undertake future research and development costs and corresponding procurement costs, and its cutting-edge technology will also be authorized by the technology joint venture company to share across the brand within the Geely Holding Group.
Li Shufu, Chairman of Geely Holding Group, said: "The synergy within the Geely Holding Group is entering a new stage, which is the only way for us to grow into a multinational brand with a multi-brand matrix. Through joint development, sharing of cutting-edge technology and joint procurement, The company's brands will achieve economies of scale while maintaining unique positioning and differentiated configurations, and meet the needs of users in different market segments according to their respective standards and characteristics."
On the day of the event, the Lectra Automobile Joint Venture Company was also announced. Since its release in Berlin last October, Lectra has won great attention in the global automotive market. During the Shanghai Auto Show in April this year, its Lectra 01 quasi-production car and the 03 concept car were launched simultaneously. 01 production models are expected to be listed in China in the fourth quarter of this year.
At present, the Lectra Automobile Sales Company has been established, the channel construction work has been fully carried out, and the “Lianke Space†and “Lake Center†models have been complemented by innovation. The Lectra space provides display and sales functions in large urban commercial centers, with better drainage and brand recognition. The Link Center has the functions of traditional car 4S stores such as display, sales and after-sales service. It is expected to form 100 scales at the end of this year, covering major consumer markets.
Geely Automobile Group President and CEO An Conghui said: "Based on the joint development of the CMA basic module architecture and the creation of the Lectra brand, Geely and Volvo will continue to deepen technical cooperation, fully share resources, and continuously enhance the core competitiveness of the two companies. Achieving sustainable development creates a broader space. This provides a strong support for our strategic goal of “production and sales of 2 million vehicles by 2020 and entering the top ten of the world's automotive companiesâ€.
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