- Volvo and Geely will continue to focus on EV development via improved collaboration.

- Both the brands will retain corporate structures despite calling off the long awaited merger.

Swedish carmaker Volvo and China’s Geely Auto have decided to call off their plans to unify citing reason that the brands will be able to grow faster as separate entities. According to a joint statement released, Volvo and Geely aim to secure new growth opportunities in their respective market space while maintaining their existing separate corporate structures. The companies will continue to work in tandem on further developing the technologies needed for their existing electric vehicle architecture and autonomous driving tech.

In addition to the big announcement, Volvo and Geely have confirmed the grouping of their existing powertrain operations into a new standalone company. The latter is expected to become operational this year and will provide IC engines, transmissions, and next-generation dual-motor hybrid systems for use by Volvo and Geely as well as other brands. There are also plans to share and jointly source batteries, electric motors and connectivity solutions including the new SEA and SPA2 electric architectures among their brands.

The proposed sharing of platforms and EV architectures between Volvo and Geely will drive additional synergies and allow for an expansion of product portfolios across the Volvo, Geely, Lynk & Co and Polestar brands. Leveraging Volvo’ existing dealer and service network, the two companies will also collaborate on globally expanding the jointly owned Lynk & Co brand.