New joint venture focuses on electrification of future vehicles.

Volvo Cars has announced plans to set up a new joint venture technology company with Geely Holding, the Chinese car group. The goal of this partnership, Volvo explains, is to share existing and future technologies, deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next generation electrified vehicle technology.

The new joint venture will be 50/50 owned by Volvo Cars and Geely Holding and be headquartered in China with a subsidiary in Sweden.

“Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting,” said Håkan Samuelsson, president and chief executive, Volvo Car Group. “This planned collaboration will strengthen Volvo’s ability to develop next generation electrified cars.”