Volvo might share technology with Geely to make it more competitive in China

Article by Christian Andrei, on April 23, 2012

A decision will have to be made soon by Zhejiang Geely Holding Group Co. on whether to let Volvo Cars share technology with Geely or make the Chinese brand compete with other segments alone. In 2010, Geely bought Volvo from Ford. Li Shufu, the chairman of Geely and Volvo, said that developing a China-only "premium" co-brand will mean that directly competing with Volvo could be prevented.

But for this to work, Li has to achieve a delicate balance. When Li was interviewed at the Hangzhou headquarters, he said that keeping Geely “from dying” requires a lot of hard work. He mentioned that one of the ways to accomplish this is to mesh Geely’s mass-market cars with Volvo technology.

Li said that if it does borrow from Volvo’s technology, it will make sure that Geely cars (either the current brands or the new China-only brand) won’t damage Volvo's more upscale brand image. Li said that this premium brand would be positioned between Geely and Volvo.

He said that improving Geely cars will require advanced technology but at the same time, Geely cars have to be regarded as cars for the masses. The dilemma now is to balance “affordability and good technology."

Li said that Geely has to get an edge as competition in China (the world’s largest market by sales volume) has become so fierce. Under the technology sharing being envisioned, Geely’s engineering capabilities will have to be improved to get a solid foundation. [source: Autonews]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries