Geely Holding is set to establish a Research and Development center in Gothenburg, Sweden. The center will develop a new modular architecture and set of components for future C-segment cars, addressing the needs of both Volvo Cars and Geely, and be run by Mats Fägerhag, currently Vice President at Product Strategy within Volvo Cars
The new R&D center with leverage the Volvo technology leadership within Geely Holding and employ approximately 200 full-time employees from Sweden and China.
“Our group has ambitious goals to increase the competitiveness of our brands,” majority owner and Chairman Li Shufu said in a statement. “Geely will continue to improve its product quality in the years to come and can learn from Volvo Cars. However, the sharing of knowledge and technology has to be done without jeopardizing brand integrity and individual product development. We believe a stand-alone, yet joint R&D center with a focused approach is the best way to achieve this.”
The international team at the new R&D center will be charged with developing a cross-brand modular strategy to a new level, delivering on the premium aspects customers expect from a Volvo product in order to gain traction in the global premium segment. On the other hand, Geely need to meet the demands of the high volume segment in China and some international markets, which requires a new level of technology.
The R&D center will be located in Gothenburg, building on the extensive automotive competence established in the region. The modular architecture and set of components will enhance product technologies and attributes whilst also delivering considerable cost savings in terms of development, testing and sourcing, leading to the realisation of significant economies of scale.
In parallel, the development of the Volvo Cars architecture for larger segments (SPA) continues within Volvo Cars’ own R&D organization. The first SPA vehicle will be launched in 2014.