Volvo and Geely announced today that a new research and development center is operating and has begun work on developing a new modular architecture to be shared between the companies.
This is a separate platform from the Scalable Product Architecture Volvo just debuted during the Frankfurt Motor Show with its Concept Coupe (pictured). Instead, Volvo and Geely will both be able to underpin smaller cars while enjoying reduced research and development costs.
“The modular design, which allows several different vehicle platforms to be developed from one single architecture, has been a proven approach in the industry. This will ensure tailor-made solutions to multiple brands for various market segments. This joint R&D Center with its combined strengths will enhance our competitiveness in technological leadership,” the center’s CEO Mats Fagerhag said.
Geely will use the platform to build mass market vehicles while Volvo will continue to focus on the lower volume premium segment. Volvo CEO Hakan Samuelsson recently emphasized the importance of the brand being perceived as being close to German luxury brands.
Volvo hasn’t said which vehicles will be based on the yet-unnamed platform. The facility being used to develop it is located in Gothenburg, Sweden, and will benefit from resources in the area, Geely said.
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