Volvo and Geely come to agree on tech transfer

One of the major sticking points for Geely’s take over of Volvo was a technology transfer, technically Volvo’s IPR is largely Ford’s IPR, but it seems that Geely, Volvo, and Ford have come to an agreement regarding the sharing of technology. Geely are planning to build an entirely new brand based around older Volvo technology, much in the same way that other joint venture companies have produced sub brands with their Chinese domestic partners, GM’s Baojun brand has already proven to be a hit.

Victor Yang, Geely’s PR top man commented that Geely will be able leverage its access to Volvo’s IPR to help Volvo develop a new brand premium brand for the Chinese market, and possibly beyond.

Volvo and Geely are also reportedly carrying out joint research on electric vehicles and new energy vehicles. In recent years the Chinese government has been insistant that foreign car companies carry out research and design in China if they are going to produce cars locally, Geely and Volvo’s plans for a joint venture in the Chinese market have already been submitted to the government and are waiting approval.