Volvo strengthens ties with Lynk & Co
This morning, Swedish carmaker Volvo and its owner Geely Holding sent out a press release saying they are setting up a new joint-venture to “deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next generation electrified vehicle technology.”
In practice, this means that Volvo Cars, Geely Auto and Lynk & Co will share vehicle architecture and engine technologies via cross licencing arrangements of technologies managed by the new joint venture. Headquartered in China, the latter will be 50-50 owned by Geely Holding and Volvo Cars.
Volvo is also taking a significant minority stake in Lynk & Co. The latter will make extensive use of technology developed by Volvo for the upcoming XC40. "We want to have a say in the further development of Lynk & CO, especially as this will be a company that will share a lot of technology and components with Volvo," Volvo CEO Hakan Samuelsson told Automotive News Europe.
The particularity of Lynk & Co is that it will not have points of sale, but only showrooms in large cities. Customers can only buy their car online, after which it is delivered at home. Maintenance and repair is likely to be the prerogative of Volvo dealers. Advanced connectivity, innovative services and customised car sharing are amongst its key propositions.
Picture copyright: Lynk & Co, 2017
| 20/07/2017 | Dieter Quartier