Also announced today is a new joint venture company to be split 50/50 between Volvo and Geely. Based in China, but with a subsidiary in Gothenburg, Sweden, the new firm will manage licensing of platforms, drivetrains and technologies between Geely's various brands.
It will also be responsible for improving component sourcing and reducing procurement costs.
Above: Lynk & Co 01 crossover.
According to Hakan Samuelsson, Volvo's CEO, "This planned collaboration will strengthen Volvo’s ability to develop next-generation electrified cars".
Earlier this month, Volvo announced all of its new cars from 2019 onwards will feature either fully electric, plug-in hybrid or hybrid drivetrains. In June, it launched Polestar as a standalone brand focussing on electrified sports cars.
As has already been reported, Lynk & Co's initial models, including the 01 crossover and 03 sedan will use Volvo's newly developed Compact Modular Architecture (CMA), which will also underpin the upcoming XC40 SUV and the next-generation S40 sedan.
Above: Lynk & Co 03 concept.
Lynk & Co was launched last year, and is being pitched as a semi-premium global brand. Slotting in between Geely and Volvo, the new brand will focus on ride and car sharing, and connected technologies.
The Lynk & Co 01 and 03 are expected to be powered by 1.5-litre three-cylinder and 2.0-litre four-cylinder engines, with a plug-in hybrid slated for later release.
Above: Volvo S90.
Geely Holdings bought Volvo from Ford in 2010 as the American automaker dismantled its Premier Automotive Group. With Volvo's sales and revenues growing, rumours have been building it is planning on launching a share offering.
Last year, the Swedish marque raised five billion Kronor ($760 million) by issuing preference shares to institutional investors, although it denied it was planning an IPO.