The joint R&D Centre of Geely Group and Volvo Cars has begun operations in Lindholmen Science Park, Gothenburg, Sweden, following a decision made earlier in 2013.
This new center will develop a modular architecture and components for the next generation leading C-segment cars for both Geely Auto and Volvo Cars.
This new center will help the company to achieve synergies through economies of scale and scope in terms of development, testing and procurement. Volvo Cars will focus on the global premium car market, while Geely Auto will remain focused on the mass market.
With this move, Geely Group plans to leverage global technological resources in different business units to build R&D capabilities and teams, enhancing its ability to continuously innovate.
Geely Group president An Conghui said that the modular architecture is an important springboard for Geely Group's sustainable development globally and benefits the growth of both Volvo Cars and Geely Auto.
"The architecture will provide Geely Auto with the tools to improve its products and technology significantly," Conghui added.
"Capital investment in the Centre will help drive Volvo Cars' technological advances. Access to Geely Auto's OEM suppliers in Asia will also be made available to Volvo Cars for procurement optimisation as needed."
To support R&D and daily operations, Geely Group will invest heavily in this new Center, which will take the advantage of industry-specific capabilities and abundant resources available in the region. Currently operating with approximately 70 engineers, the company will expand the workforce to 200 by the second half of 2014.
