Volvo developing subcompact global car with Geely

Article by Christian A., on January 29, 2014

Zhejiang Geely Holding Group Co. and Volvo Car Corp. have commenced the development of a subcompact vehicle platform in their r&d center in Sweden. Geely will exclusively use the subcompact to compete against global rivals like the Ford Fiesta, Volkswagen Polo, Honda Fit and Toyota Yaris, according to a report by The Wall Street Journal, citing an interview with Volvo chief executive Hakan Samuelsson.

The Journal reported that the subcompact car may be rolled out to the market in several years. According to the paper, a vital goal of the project is to develop a subcompact car that complies with safety and quality standards in Western markets where Chinese carmakers have been struggling to penetrate.

The subcompact would be the second joint project undertaken by the r&d center, following the development of a compact car platform that both Geely and Volvo could use. The Journal reported that the compact car would be rolled out in three or four years. Geely acquired Volvo in 2010 from Ford Motor Co.

The Brose Group disclosed on Jan. 22 that it would be the supplier of components for the compact car that Geely and Volvo are developing. The German supplier said the compact car will be introduced in China and Europe. Brose also will supply a number of mechanical components like door, seat and latch systems, power tailgates and electric drives for Geely's other models. [source: automotive news - sub. required]

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