Volvo is Sharing its Technology

As a part of the Geely platform, the Volvo team is preparing to share its engine technology with Geely and Lynk & Co. The group is called Zhejiang Geely Holding Group and the purchase of Volvo in 2010 created a trio of car companies for the group with Volvo being the most advanced at the time. With the developments and growth that Geely has experienced since this purchase, the brand is ready to begin to take on more of what Volvo has to offer in order to create better models for the markets they serve.

One of the developments that Volvo has continually worked on is bringing smaller engines to the market that can provide enough power for all models. The most recent success of this was the 2.0-liter engine that was used across the board with either turbocharging, supercharging or both to ensure the power needed even for the largest of SUVs. More recently, Volvo has been developing a 1.5-liter engine that could be used in even smaller cars and work great for both Geely and Lynk & Co. vehicles to make it possible for these brands to enjoy more of what’s needed on the roads in China.

Because the parent brand has benefited greatly from the development and technology offered for the past several years, Geely has been able to increase its overall sales during this time. The GC9 sedan and Boyue SUV have helped to increase the sales in China which grew by fifty percent last year to a total of 766,000 vehicles. The expectation is that continued development will help this brand move up over 1 million vehicles for this year. In addition to this goal, the next step is for Geely to begin to sell vehicles outside of China.

One of the concerns voiced regarding this partnership and being part of the group was that Volvo and its technological advantage would become diluted. While the brand will share its engine technology across the board, Volvo has always been able to differentiate itself from the rest of the brands on the market with the offering of advanced safety and technology. This will continue to be the place where Volvo stands head and shoulders above the rest of the market. Because Volvo will maintain its hold in this area of the market the sharing of engine technology will not cause the brand to become diluted at all.

There’s no doubt that all three brands can benefit from each other as this Geely team works to build a brand group that could eventually make its way into many markets around the world. This year the group purchased a 49.9 percent stake in the Proton brand. This brand has been struggling in Malaysia and with the help of Geely and the technology that can be brought to this market this will be another brand that can benefit from the Volvo engine technology as the members of the Geely group are increased in numbers, the quality will also improve with what will be offered across the four brands.