STOCKHOLM (Reuters) - Sweden's Volvo Car Group said on Thursday it would set up a joint venture with its Chinese parent to share existing and future technology with other brands in the Geely family.
Volvo said the joint venture would be 50/50 owned with Zhejiang Geely Holdings, which also controls Chinese automaker Geely Auto and new brand LYNK & CO, under the terms of a memorandum of understanding.
Volvo, Geely Auto and LYNK & CO, a brand established last year and positioned between Volvo and Geely in price, would share vehicle architecture and engine technologies via cross licensing arrangements managed by the new venture.
"We will unlock significant benefits across our portfolio by sharing both technologies and next-generation vehicle architectures," Zhejiang Geely Chairman Li Shufu said in statement.
"I am confident these synergies can be achieved while preserving the separate identities and strategic autonomy of our different automotive brands."
Volvo would also take a minority shareholding in LYNK & CO, the carmaker said.
Reporting by Niklas Pollard; Editing by Edmund Blair