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February 24, 2021

Letter from Håkan: A closer collaboration with Geely Auto

Hello everyone,

 

We have now concluded our review of options for a combination of Volvo Cars and Geely Auto.

 

We considered several different possibilities and reached the conclusion that a closer cooperation is the best way forward.

 

We will deepen our collaboration with Geely Auto in a range of areas: powertrains, electrification, autonomous drive and procurement. At the same time, we will continue as two stand-alone companies.

 

I am very excited about the prospect of this new way forward. Many of you already have experience when it comes to successful collaboration with our colleagues at Geely Auto. Going forward, we will build further on this success.

 

By doing so, we create two stronger, fast-growing companies that can benefit from further synergies and efficiencies. We can build on our strengths, be more cost-efficient and be faster in technology development.

 

For example, by spinning off and combining our internal combustion engine (ICE) operations with those of Geely Auto we create a stronger ICE business and allow ourselves to focus fully on electrification.

 

Developing electric vehicle technology and jointly sourcing components gives us the opportunity to bring better cars to our customers, faster.

 

The same applies to our joint development of autonomous drive (AD) technology which we do together with our AD software company Zenseact. It can set a new standard in the industry for safe autonomous drive.

 

And as Lynk & Co expands globally, they can leverage our global logistics distribution and service network. That way our retail partners could get interesting extra business, utilising their capacity.

 

So, to summarise, this new, deepened collaboration positions us well for further growth and profitability. We can collaborate with Geely Auto and others as if we were a combined company, without actually being one.

 

The result will be an even stronger Volvo Cars.

 

Håkan