Volvo and Geely to deepen their partnership

Volvo Cars, the premium car maker, is planning to set up a new joint venture technology company with Geely Holding, the Chinese car group, to share existing and future technology, deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next generation electrified vehicle technology.

According to a Memorandum of Understanding signed today, Volvo Cars, Geely Auto and LYNK & CO will share vehicle architecture and engine technologies via cross licensing arrangements of technologies managed by the new joint venture. They will also cooperate more deeply by commonly sourcing components and cutting procurement costs.

Volvo Cars, Geely Auto and LYNK & CO are controlled by Geely Holding, the Chinese car group. The new joint venture will be 50/50 owned by Volvo Cars and Geely Holding and be headquartered in China with a subsidiary in Gothenburg, 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. “This planned collaboration will strengthen Volvo’s ability to develop next generation electrified cars.”

Volvo Cars and Geely already share technology, most notably the Compact Modular Architecture (CMA) which is being used by Volvo Cars for its soon-to-be-announced smaller range of 40 series cars and by LYNK & CO.

The intellectual property rights for the technology to be shared will remain with the company that developed it, but the technology itself will be available for use by Volvo, Geely Auto and LYNK & CO, via license agreements.

Future modular vehicle architectures and other technology will be shared and developed based on cost sharing agreements. The company leading the development will own the technology and the other group companies will have full access to it through a license, reducing overall development costs.

It is expected that the collaboration will extend in future to also cover electrified vehicle components such as battery cells, e-motors and charging systems in order to maximize synergies across the group.

Separately, it is also announced today that Volvo is to take a significant minority shareholding in LYNK & CO. This stake reflects the fact that LYNK & CO will benefit from the use of Volvo technology both now and in the future. LYNK & CO will be jointly owned by Geely Holding, Geely Auto and Volvo Cars.

Li Shufu, chairman of Geely Holding said: “We will unlock significant benefits across our portfolio by sharing both technologies and next-generation vehicle architectures. I am confident these synergies can be achieved while preserving the separate identities and strategic autonomy of our different automotive brands.”

The above transactions are subject to definitive agreements and relevant authority approvals.

Volvo Car Group in 2016

For the 2016 financial year, Volvo Car Group recorded an operating profit of 11,014 MSEK (6,620 MSEK in 2015). Revenue over the period amounted to 180,672 MSEK (164,043 MSEK). For the full year 2016, global sales reached a record 534,332 cars, an increase of 6.2 per cent versus 2015. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.

About Volvo Car Group

Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 534,332 cars in 2016 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.

As of December 2016, Volvo Cars had over 31,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).

About Geely Auto Group

Geely Auto Group is a leading auto manufacturer based in Hangzhou, China. Geely Auto Group consists of two brands, Geely Auto and LYNK & CO.

Geely Auto Group was founded in 1997, and has rapidly grown over the years. The Group is listed on the Hong Kong stock exchange, and saw its sales volume increase to 765,000 units in 2016 with 2017 sales goal set at one million units. In the first five months of 2017, Geely Auto Group sold a combined 441,854 units, an increase of 89% over the same period in 2016 and completing 37% of the groups 2017 sales goal of one million units.

The controlling shareholder in Geely Auto is Zhejiang Geely Holding Group (ZGH), which is also the parent company of Volvo Car Corporation in Sweden and the London Taxi Company.

Via: Volvo Car Group Press Release

Chinese auto major Geely selects Qualcomm Automotive Platforms for their next generation infotainment systems

Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated (NASDAQ: QCOM), and Geely Auto Group (Geely), today announced at Mobile World Congress Shanghai that Qualcomm® Snapdragon™ automotive platforms were selected for inclusion in the next-generation of infotainment systems in Geely Auto Group vehicles. These systems include the world’s first-announced infotainment offering with an integrated 4G LTE modem using the Snapdragon 820Am automotive platform. Geely vehicles featuring Snapdragon automotive platforms are expected to be available from 2020 onward, in addition to Geely’s connected cars featuring telematics applications already available using Snapdragon LTE modems.

“Geely is one of the fastest-growing automakers worldwide, fueled by remarkable growth in China, the acquisition of beloved global brands such as Volvo and the iconic London Taxi Company, and the recent launch of our premium global brand, LYNK & CO” said Mr. Feng Qing Feng, chief technology officer, Geely Auto Group. “Qualcomm Technologies invigorates this momentum, helping us to provide consumers with the cutting-edge infotainment and connected car experiences they demand, thanks to the high-performance processing and superior connectivity delivered by Snapdragon automotive platforms.”

Geely is committed to scientific innovation and R&D to deliver high-quality products that meet the demands of different consumers in different regions and segments. The automaker expects to use Snapdragon automotive platforms on upcoming generations of its iNTEC technology package. This includes G-Netlink, a system that allows drivers to interface with their vehicles through a myriad of ways, including remote control via app to lock, unlock or the vehicle, turn on heating and cooling, and also provide in-car Wi-Fi; and G-Pilot, and intelligent drive technology designed to support a high degree of driving comfort, assistance and autonomy over the next decade.

Future generations of Geely’s iNTEC are planned to take advantage of the high-performing multimedia and graphics capabilities of the Snapdragon 820A platform, Qualcomm Technologies’ most advanced automotive grade solution designed to support immersive in-car experiences, including music and video streaming, 3D navigation, support for multiple high-resolution displays, and superior GPU performance for rich 2D/3D graphics. At the heart of the platform is Qualcomm Technologies’ custom-built system-on-chip (SoC) using a highly-optimized heterogeneous computing architecture based on a 14nm FinFET advanced process node. The SoC features Qualcomm Technologies’ custom 64-bit Qualcomm® Kryo™ CPU, Qualcomm® Adreno™ 530 GPU and Qualcomm® Hexagon™ 680 DSP Vector eXtension. The platform’s hypervisor support offers integration of multiple in-car visual experiences, including instrument cluster and infotainment displays. The Snapdragon 820A platform is also designed to allow infotainment systems to be upgradable through software updates, allowing vehicles to be upgraded with the latest features and differentiation.

Select Geely models are expected to use the Snapdragon 820Am variant of the platform with an integrated X12 LTE modem, supporting up to 600 Mbps downlink and 150 Mbps uplink speeds, designed to provide exceptional in-car cloud connectivity to support key features, such as over-the-air updates, navigation with real-time updates, news and local information, emergency assistance and diagnostics.

“China is emerging as a source of automotive innovation, not only benefiting Chinese customers but also the rest of the world, by quickly adopting and commercializing leading-edge car technology,” said Patrick Little, senior vice president and general manager for automotive, Qualcomm Technologies, Inc. “We are pleased to work with Geely and the Chinese automotive ecosystem to help define the future of connected car experiences and use our industry-leading technologies to accelerate its realization.”

For more information, please visit the Qualcomm booth during Mobile World Congress Shanghai (W5.E90), or visit www.qualcomm.com/automotive.

About Qualcomm

Qualcomm’s technologies powered the smartphone revolution and connected billions of people. We pioneered 3G and 4G – and now we are leading the way to 5G and a new era of intelligent, connected devices. Our products are revolutionizing industries, including automotive, computing, IoT, healthcare and data center, and are allowing millions of devices to connect with each other in ways never before imagined. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, our QCT semiconductor business.

About Geely Auto Group

Geely Auto Group is a leading auto manufacturer based in Hangzhou, China. Geely Auto Group consists of two brands, Geely Auto and LYNK & CO.

Geely Auto Group was founded in 1997, and has rapidly grown over the years. The Group is listed on the Hong Kong stock exchange, and saw its sales volume increase to 765,000 units in 2016 with 2017 sales goal set at one million units. In the first five months of 2017, Geely Auto Group sold a combined 441,854 units, an increase of 89% over the same period in 2016 and completing 37% of the groups 2017 sales goal of one million units.

The controlling shareholder in Geely Auto is Zhejiang Geely Holding Group (ZGH), which is also the parent company of Volvo Car Corporation in Sweden and the London Taxi Company.

Via: Qualcomm Press Release