Volvo to Acquire Stake in Lynk & Co

Geely’s new automotive venture Lynk & Co plans to sweep the market with a host of new vehicles sharing a common platform with Volvo. Now, ties between the two Geely brands will grow even more as Volvo announced it will take a minority stake in Lynk & Co. While this is a little bit like using dad’s money to buy something from your sister, the move makes Volvo part owner of the fledgling car brand.

In a preliminary agreement announced today, Volvo, Geely, and Lynk & Co said they will share vehicle architectures and engine technologies. The companies will also cooperate on sourcing components, a move that will reduce costs among the partners. Intellectual property rights will remain with the individual company that developed a particular technology, but other companies in the group will have full access to the work via licensing agreements. The cooperation will be managed by a new joint venture owned equally by Volvo and Geely.

The move will accelerate the development of new electrified vehicles. In addition to vehicle architectures, battery cells, e-motors, and charging systems are expected to be shared across members of the group.

“Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting,” said Volvo CEO Hakan Samuelsson in a recent statement. “This planned collaboration will strengthen Volvo’s ability to develop next generation electrified cars.”

The companies already committed to sharing a platform known as the Compact Modular Architecture. The platform will underpin Volvo’s XC40, S40, and V40, and it will also be used on vehicles by Lynk & Co. Lynk & Co is expected to use a transverse-mounted 1.5-liter three-cylinder and 2.0-liter four-cylinder engines developed by Volvo and licensed to Geely.

Earlier this month, Volvo said that every single vehicle it introduces from 2019 will come equipped with an electric motor. Lynk & Co is also taking electrification seriously and will reportedly offer hybrid and plug-in hybrid powertrains on each of its model variants.

Lynk & Co announced last year it would launch its first model, an SUV, in the U.S., China, and Europe. The new company will also have a four-door sedan and an array of other models.

Source: Volvo

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