Following the acquisition of Volvo by China's Zhejiang Geely Holding Group in 2010, we definitely saw this news coming. The two companies have signed an agreement that will give Chinese automaker Geely access to key technologies developed by Volvo, and in turn, the deal could help the Swedish automaker lower its production costs.

As a part of the "technological cooperation agreements" signed by both companies, Automotive News China reports that Geely will be able to tap Volvo for three much-needed technologies, including the use of a midsize platform, Volvo's proven safety innovations and interior air quality systems. The latter two technologies are important to improve the crashworthiness of Geely's cars, along with helping isolate vehicle occupants from China's often severe air pollution. The report says that Volvo tech will likely be used on a premium car brand that Geely is expected to create.

Volvo, on the other hand, is to benefit from the "local market exploration experience and cost control experience" of Zhejiang Geely Holding Group, which is technical way of saying that Volvo will be able reduce its costs by tapping into Geely's established supply chain.


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  • 31 Comments
      MotoEV
      • 2 Years Ago
      When Ford purchased Volvo, the plan was to acquire the safety experience and credibility established by the Volvo brand WITHOUT having to start from scratch. In addition, Ford used the Volvo S80 platform (P2) for numerous Ford, Lincoln, and Mercury products domestically and internationally. The Ford P24 platform (based on the P2 platform) currently in use is also found in the Ford european products. When Ford bought Land Rover from BMW, they gained access to significant intellectual property access from the newly developed Range Rover at that time. In addition to the IP knowledge, Ford spread some of the technologies into Ford products. Ford's CUV/SUV lineup acquired the Land Rover knowledge and experience in off-roading sold Land Rover when it was no longer needed. Ford licensed 1st generation Prius hybrid technology patents from Toyota to ensure lawsuits would not arise. Ford learned from Toyota when it developed the Ford in-house hybrid engines and technologies and still partners with Toyota on Hybrid technologies. Ford DID NOT start from scratch. Ford could use the patented technologies of these formerly owned companies and after successfully applying them to Ford family products NO LONGER NEEDED them and their associated liabilities and sold them.
      riserburn99andre
      • 2 Years Ago
      I mean come on now everyone knew the real reason they bought Volvo was to get the tech out of it. I'm not saying it's a bad thing since they did put cold hard cash and invested in Volvo for it. They want there money's worth so they can continue investing into more vehicles and make themselves a global auto entity so you know what there is nothing wrong with that. Atleast Ford did Volvo a favor and sell it to a company that seems to want to keep it around and has the sustainability to do such. Time will only tell however
      thedriveatfive
      • 2 Years Ago
      Oh my! Does this mean that Walmart will be flooded with Volvo nock-offs soon?
      khn12t
      • 2 Years Ago
      they own the company. they can do whatever they want with it..
      Andre Neves
      • 2 Years Ago
      I know I'm going to get downvoted for this, but for once I'd actually like to see the Chinese develop their own (automotive)technology for once instead of stealing/copying it from everyone else.
        Bruce Lee
        • 2 Years Ago
        @Andre Neves
        That's plain silly, you'd always be 30 years behind if you tried to start from scratch with no help. Everyone copies to even the game up whether it's the Japanese, or the Koreans, or the Chinese. And in this case Geely isn't copying so much as paying for the tech to help even them up. Once they've caught up they'll be able to develop their own advancements. Even the US used to copy things rampantly from Europe. During the industrial revolution the US encouraged copying and a lot of intellectual property offenders were considered national heroes. You guys have very short memories. The reality is that you probably are better off having China copy instead of innovate because nobody wants to buy a crappy copy, not even the chinese. But when they really do innovate they're going to be strong competitors.
        Toronto St. Pats
        • 2 Years Ago
        @Andre Neves
        Yeah but the fast-track is to copy. Virtually every other major manufacturer has had at least a 60 year head start, some more than 100. So if you don't want to spend 40 years playing catch-up, then you can always pay for that experience. It's kinda what school is all about. Instead of figuring math and science out all by yourself, go to school and have someone teach you. And we know the Chinese are good in school lol
          muppethead
          • 2 Years Ago
          @Toronto St. Pats
          You make it sound like school is for the chosen few who can afford it. It's not optional. Society needs school. Without an educated public, everything we have will crumble.
        Burack
        • 2 Years Ago
        @Andre Neves
        Given the situation, I doubt Volvo has any say in that matter.
          The Wasp
          • 2 Years Ago
          @Burack
          Volvo did have a say in the matter -- it agreed to sell itself to Zhejiang Geely Holding Group rather than cease to exist. I'd say it made the right decision.
      ZOZ
      • 2 Years Ago
      Ford was stupid to put Volvo in wrong direction, also to let Volvo go; they'll regret it
      mbukukanyau
      • 2 Years Ago
      Well, Ford will sooner or later have to wish they did not sell Their luxury divisions. Lincoln is on its death bed and its former companies are doing really well.
        Toronto St. Pats
        • 2 Years Ago
        @mbukukanyau
        A great opportunity was lost when they got rid of Volvo for peanuts basically.
        Jesus!
        • 2 Years Ago
        @mbukukanyau
        Lincoln will be just fine. Jaguar was a nightmare as well as Rover. Volvo was worth keeping though.
      Jesus!
      • 2 Years Ago
      I am still unhappy with Ford for selling Volvo. Big mistake.
        Brodz
        • 2 Years Ago
        @Jesus!
        They had no choice. They had to focus on the core Ford brand or they would have gone under. I just wish they had have bought Aston back recently. Aston could have pawned the old platforms to Lincoln. But anyway...
      Yang Xi Gua
      • 2 Years Ago
      Not to say Geely doesn't have good tech. 2011 Emgrand EC8 is easily one of the best Chinese cars ever. Geely also has its own turbo engines.
      Yang Xi Gua
      • 2 Years Ago
      Geely's 1.3L turbo is a fine machine and can easily migrate to future Volvo cars.
      Hazdaz
      • 2 Years Ago
      THERE'S A SHOCK. Finally the whole reason that the Chinese bought Volvo is actually happening. The transfer of 1st world tech to the Chinese. Thanks FORD!
        muppethead
        • 2 Years Ago
        @Hazdaz
        Chinese aren't some alien creatures. They're human, dude. What does it matter another society gets access to tools/information to build better products? It's a positive thing for both individuals and greater humanity as a whole. Alright, so a few companies may lose footing in all of this, but that's change. People will adapt.
      • 2 Years Ago
      [blocked]
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