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

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Volvo Cars’ first quarter 2017 operating profit rises 11 per cent to SEK3.5 billion

 

Volvo Cars, the premium car maker, reported an operating profit of SEK3.5 billion for the first three months of the year, up 11 per cent from SEK3.1 billion during the same period last year. The increase was mainly driven by strong demand for the company’s XC60 and 90 series cars.

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Volvo Cars reported an operating profit margin of 7.3 per cent, down from 7.5 per cent last year. Profitability was partly offset by costs related to the launch of the new 90 series cars and the new XC60, as well as continuous investments in new technologies and a rising number of employees. Since the first quarter of 2016, Volvo Cars has welcomed almost 5,000 new employees, bringing the total global work force to 33,000.

Global retail sales increased by 7.1 per cent to 129,148 cars in the January to March period, resulting in a first quarter revenue of SEK47.6 billion, up 13 per cent from SEK42.0 billion last year.

“In the first three months we have seen strong demand for our 90 series cars as they reached markets worldwide,” said Håkan Samuelsson, president and chief executive. “We also unveiled the new XC60 in the first quarter and we expect this car to have a positive impact on sales and profitability.”

In March, Volvo Cars unveiled the new XC60 model at the Geneva motor show, which was received to great acclaim. Later this year, Volvo Cars will launch the XC40, based on the new CMA small vehicle platform, positioning the company for further growth in the fast growing SUV segment.

Key figures

Q1 2017

Q1 2016

Net revenue, MSEK

47,592

42,027

Operating income, EBIT, MSEK

3,491

3,145

EBIT margin, %

7.3

7.5

Net income, MSEK

2,606

2,069

Cash flow from operating and investing activities, MSEK

-2,304

-323

 The Asia Pacific region reported sales growth of 16 per cent in the first quarter to 32,872 cars, boosted by a strong performance in China, Volvo Cars’ largest market. There, sales rose by 18.8 per cent to 23,335 cars, following strong demand for the locally-produced XC60 and S60L models as well as the XC90 and S90.

Sales in the EMEA region increased by 9.2 per cent to 78,820 cars sold, on the back of a strong performance in Sweden, the United Kingdom and Germany. The region continued to see strong demand for the new V90 and XC90 as well as Europe’s most popular premium mid-size SUV, the XC60.

The Americas region reported sales of 16,641 cars, of which 13,476 in the United States. The XC90 remained the best-selling model in the Americas.


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).

Press Release

Volvo Cars celebrates 90 years at Techno Classica

Volvo Cars, the premium car maker, celebrates its 90th anniversary at the world’s biggest show for classic vehicles, Techno Classica in Essen, Germany, 5 – 9 April.

On April 14, 1927, the first Volvo Car drove out of the factory gate in Gothenburg, Sweden.

However, the Volvo Cars stand at Techno Classica does not only showcase the company’s history. It also features the company’s latest product, the all-new XC60, launched at the Geneva Motor Show just last month. Techno Classica will be the first German car show for the new XC60.

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The new car replaces Volvo’s highly-successful original XC60, which in the nine years since its launch became the bestselling premium mid-sized SUV in Europe with nearly a million units sold globally. The XC60 today represents around 30 per cent of Volvo’s total global sales.

 “We have a strong heritage in designing stylish and dynamic SUVs that offer the latest in technology. The new XC60 will be no exception. It’s the perfect car for an active lifestyle, and it represents the next step in our transformation plan,” said Håkan Samuelsson, President and Chief Executive, Volvo Car Group.

The 6 classic Volvo models exhibited at the Techno Classica will be:

1934 PV654

The Volvo PV600 series came in 1929, only two years after the little Swedish car company had started its operations. It had a distinct American inspired design and a powerful 3-litre straight six cylinder engine. A seven seater version was also made, mainly for taxi purposes.

Approximately 4,400 cars of the Volvo PV600-series were made during the model´s 8 year long life span.

1957 PV444

The PV444 was called “The Little Volvo” when it first was shown in Stockholm in 1944. However, due to material shortage after WWII, production didn´t start until 1947. For the first time, Volvo could offer a model that was within reach for customers with an ordinary income and the demand was much bigger than the supply.

The PV444 was the first Volvo model to be exported to the USA. The first car came to the port in Long Beach, California, in 1955 and only two years later Volvo was the Sunshine State´s second biggest import brand.

1800 S

The Volvo P1800 is probably the most iconic Volvo model of all time.

It became known worldwide as “The Saint´s car” in the 1960´s TV-show of the same name, starring Roger Moore as Simon Templar.

Manufactured from 1961 until 1973, the P1800 is today a highly sought-after classic among collectors.

1968 145 estate

At the end of November 1967, Volvo presented the third variant in what was now developing into a complete car family known as the 140 Series: the Volvo 145.

 The Volvo 145 was a 5-door estate with a rear section that had a virtually vertical tailgate. Everybody agreed that this was a safe, comfortable and extremely practical and spacious car. The cargo volume was more than two cubic metres and the floor of the cargo area was completely flat.

The Volvo 145 quickly became an extremely popular estate and played an increasingly important role within the 140 Series.

262 C

The Volvo 262C was launched at the Geneva Motor Show in March 1977, as a part of Volvo´s 50th anniversary. It was the result of a cooperation between Volvo and Bertone, designed in Sweden but assembled in Turin, Italy.

This four seater coupe with the radical roofline that became the 262C´s trademark, was based on the two-door, six-cylinder 262 sedan. Custom stampings were done by Bertone and the Italian firm also provided the custom interiors in pleated leather, elm veneer and deep pile carpeting.

The 262C was powered by the PRV (Peugeot-Renault-Volvo) fuel-injected B27F overhead-cam V6, producing 140 bhp. A total of 6,622 cars were built between 1977 and 1981.

850 R

The 850 R is the high performance version of the successful Volvo 850.  It was launched in 1996 and was the successor to the 850 T5-R.

The transversely mounted, 2.3 litre, inline 5-cylinder engine produced 250 hp, giving the car 7.5 seconds to reach 100 km/h. The intense red colour was unique to the 850 R, but it could be ordered also in five other colours, depending on market.

The 850 R was produced both as a sedan and an estate and is now a much sought after “youngtimer” classic.


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.

Volvo Cars & Autoliv AB came together to form the joint venture Zenuity which makes ADAS software

 

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Volvo Cars, the premium car maker, and Autoliv, the worldwide leader in automotive safety systems, have signed a final agreement to establish a new joint venture called Zenuity to develop software for autonomous driving and driver assistance systems, based on the letter of intent announced during fall 2016.

 Zenuity will create a new entrant in the fast growing global market for autonomous driving software systems. It marks the first time a leading premium car maker has joined forces with a tier one supplier to develop new advanced driver assist systems (ADAS) and autonomous driving (AD) technologies.

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As part of the agreement announced today, at the time of closing Autoliv will make a total investment of around 1.1 billion SEK into the joint venture, the large majority of which is an initial cash contribution, and which also includes certain assets. Volvo Cars will also contribute certain intellectual property assets and human resources to the joint venture, but no cash. As previously announced, Autoliv and Volvo Cars will own the joint venture 50/50.

Headquartered in Gothenburg, Sweden and with additional operations in Munich, Germany, and Detroit, USA, the initial workforce of around 200 people will come from Volvo Cars and Autoliv. The company is expected to grow to over 600 employees in the medium term. Operations are expected to start during the first half of 2017 after approvals from relevant competition authorities in several countries have been obtained and other customary closing conditions have been satisfied.

 Both Volvo Cars and Autoliv will license and transfer the intellectual property for their ADAS systems to the joint venture. From this base, the company will develop new ADAS products and AD technologies. The new company is expected to have its first driver assistance products available for sale by 2019 with autonomous driving technologies following shortly thereafter.

 Autoliv will be the exclusive supplier and distribution channel for all the new company’s products sold to third parties, and there will be no exclusivity toward any customer or the owners. Volvo Cars will source such products directly from the new joint venture.

 As previously announced, Dennis Nobelius will be the Chief Executive Officer of the joint venture. The joint venture will be governed by a separate board of directors, and independently operate within its own facilities.

Via: Global Newsroom Volvo Cars