Volvo Strengths Geely Partnership to Increase Electric Vehicle Output
【Summary】Volvo, owned by Zhejiang Geely, is looking to increase its partnerships with some of the company’s other outlets, as the automaker looks ramp up production of electric vehicles.
Automakers may be putting an emphasis on coming out with autonomous vehicles, but electric cars are also vital components in a self-driving future. While automakers are busy working on a few electric vehicles, Volvo's taken the whole electrification phase to another step.
Earlier this month, Volvo announced that it would completely cut gasoline-powered cars from its lineup and only have electric and hybrid vehicles on sale by 2019. The move is the first one of its kind in the automotive industry and is most likely one that Volvo's owner, Geely, is pushing for. Geely, a Chinese multinational automotive manufacturing company, that's headquartered in China understands the need for EVs as stronger emissions, especially in its home market, are forcing more efficient methods of transportation.
Getting Some Help From Within
Making the switch to go mostly towards electric vehicles won't be easy, and Volvo, and Geely, is already feeling the heat, leaving the automaker to look towards the manufacturing company's other outlets, reports the Telegraph. Under the partnership, Geely and Volvo will create a joint venture that will see both companies equally produce components for electric vehicles, reports the outlet. The joint venture, as the Telegraph claims, will be based in China, but will have a Swedish subsidiary.
In addition to the joint venture between Volvo and Geely, the two companies will also be sharing technology with Lynk, who announced a partnership with Erricsson to enhance car connectivity, to further reduce the prices of automotive components.
Chief executive of Volvo, Håkan Samuelsson, stated, "partnerships to share know-how and technologies are common practice in the automotive industry. This collaboration will strengthen Volvo's ability to develop next-generation electrified cars." Samuelsson also added that the savings from the joint venture would allow the automaker to focus on the development of EVs.
"We will unlock significant benefits across our portfolio by sharing both technologies and next-generation vehicle architectures," said Samuelsson. "I am confident these synergies can be achieved while preserving the separate identities and strategic autonomy of our different automotive brands."
Volvo's Path With Geely At The Helm
Geely purchased Volvo back in 2010 for $1.8 billion from Ford. Since then, the automaker has been at the forefront as utilizing autonomous technology to reduce the number of fatalities on the road. Volvo, unlike other automakers, teamed up with Autoliv last September to develop autonomous software that could be sold to other companies. In addition to coming out with autonomous technology for cars, Volvo has also been testing self-driving garbage trucks in Sweden and even larger 18-wheelers that have autonomous capabilities.
Volvo's move to electrify its entire lineup will definitely pay off for the automaker, the only question is by how much. Working with some of Geely's other companies will help the automaker come out with new technology faster, which saving money. Hopefully, that translates to vehicles that are more affordable for drivers to purchase.
via: The Telegraph
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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