On August 4, 2017, Zhejiang Geely Holding Group and Volvo Cars formally signed an agreement at Geely Automobile Hangzhou Bay R&D Center to establish a technology joint venture company. The new company will realize the cutting-edge technology sharing and joint parts procurement in the field of vehicle architecture technology, high-efficiency clean powertrain and other aspects in accordance with the 50:50 share ratio. Li Shufu, Chairman of Geely Holding Group; Hanken Samuelson, President and CEO of Volvo Car Group; An Conghui, President and CEO of Geely Automobile Group; Feng Qingfeng, Vice President of Geely Automobile Group; Senior Vice President and CTO of Volvo Car Group Ryan and others attended the signing ceremony.
Lars Deng, senior vice president of the former Volvo Car Group and CEO of Asia Pacific, was appointed chairman of the joint venture company on the same day.
It is reported that the technology joint venture company is tentatively named "Ningbo Space Time Equation Technology Co., Ltd." and is headquartered in Hangzhou Hangzhou Bay New District. The technology joint venture will be operated jointly by Geely and Volvo, sharing the Volvo SPA platform and four-cylinder engine, as well as the latest technologies such as the Geely CMA base module architecture and 7DCT transmission.
In addition, the two parties will jointly develop the next-generation pure electric vehicle platform technology, and realize the synergy between Volvo Cars, Geely Automobile and Necker Automobile through technology sharing and joint procurement to promote the common development of the brand.
In this regard, 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 and sharing of cutting-edge technologies and Joint procurement, the company's brands will achieve scale effect under the premise of maintaining unique positioning and differentiated configuration, and meet the needs of users in different market segments according to their own standards and characteristics."
Volvo Car President and CEO Hanken Samuelson is full of expectations for future cooperation: “The cross-brand joint R&D and procurement within the same group has become a practice in the automotive industry. We are very pleased to reach a new technical cooperation agreement with Geely. The development of Volvo's next-generation electric vehicle technology has helped tremendously."
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€.
On the same day, Zhejiang Geely Holding Group, Geely Automobile Holdings Co., Ltd. and Volvo Car Group formally signed an agreement at Geely Automobile Hangzhou Bay R&D Center to establish a leading car joint venture company. After the new company is established, Geely Automobile will own 50% of the shares of the company, Volvo will own 30%, and Geely Holding Group will own 20%. The board members of the Lectra joint venture company also announced on the same day: Mr. An Conghui, Mr. Hanken Samuelson, Mr. Li Donghui and Mr. Feng Qingfeng as directors; Mr. An Conghui is the chairman.
Lectra is a brand-new high-end brand developed for the global urban consumer group. It has perfected the brand portfolio and market coverage of Geely Holding Group. It is an important strategic supplement after Volvo Cars is in the luxury auto market and Geely Automobile is in the mainstream auto market.
Since its launch in Berlin last October, Lectra has won great attention in the global automotive market with its leading European technology, world-class quality and individuality, open and connected brand concept.
On the eve of the Shanghai Auto Show in April this year, the Lectra brand made its debut in the Chinese market, and 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.
The Lectra brand is derived from the new CMA base module architecture jointly developed by Volvo Cars and Volvo Cars and Geely Automobile. The CMA is extremely flexible and malleable, suitable for a wide range of body types and sizes, and is compatible with a wide range of powertrains. Volvo Cars will develop a new generation of 40 series products based on CMA, and the future Lectra brand will also receive support from Volvo technology and business, including the world's leading SPA platform and powertrain.
Mr. An Conghui, President and CEO of Geely Automobile Group, said, “We look forward to further cooperation with Volvo. Volvo's technical expertise will benefit Geely and the Lectra. This will be a win-win cooperation. We will jointly develop, The way of technology sharing and joint procurement will form a scale effect and expand the market space to achieve the sustainable development of Geely and Volvo. In the future, Lectra will be a joint venture brand of Geely Automobile, Volvo Cars and Geely Holding Group, with various technologies and resources. And with the advantage of cost, it will surely usher in a better future."
Volvo Car President and CEO Hanken Samuelson said: "We are very happy to be a shareholder. The unique brand positioning and business model will complement the Geely and Volvo cars. We will spare no effort to support the car. development of."
It is reported that the Lectra Automobile Sales Company has been established, and the channel construction work has been fully carried out, and the “Lectra 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.
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