Volvo, Geely developing new global city car

Chinese car maker Geely is developing a global city car aimed at meeting Western market standards of safety and quality, aided by Swedish safety icon and joint venture partner Volvo.
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An expansion of the existing partnership between Zhejiang Geely Holding Group Co. Ltd and Volvo Cars – the latter purchased by the former in 2010 – The Wall Street Journal reports the sub-compact model is intended to rival the likes of the Ford Fiesta, Volkswagen Polo, Honda Fit (Jazz) and Toyota Yaris.

Initially being developed at a joint R&D centre in Gothenburg, Sweden, dubbed the China Euro Vehicle Technology AB, the Geely city car will be based on a new modular architecture and feature technology developed to meet global standards.

China Euro Vehicle Technology AB CEO Mats Fagerhag said a modular platform would allow for flexibility with vehicle performance, depending on the brand and target market.

"Our joint venture has gradually expanded and it is now about three times as big as when we started," Fagerhag said.

Still expected to be several years away from completion, the new Geely city car will follow a range of joint venture-developed small car products due to start reaching markets in three to four years. Fagerhag said Geely's initial focus will still be on the Chinese, Latin American and Middle East markets.

In August, the Chinese manufacturer also indicated it was preparing to introduce a series of ‘new-energy’ vehicles over the next year to cater for an expected increase in demand.