Geely chairman Li Sufu has reiterated the independence of Volvo and Geely as separate brands who will share research and development, and technology, comparing the relationship to the one shared by Germany’s Volkswagen and Audi.
‘Geely and Volvo are like brothers,’ Li said, referencing the Audi and Volkswagen connection where R&D and technologies are shared, but are positioned differently.
‘We will make Volvo cars more luxurious and high-end,’ Li continued, while Geely’s portfolio will favour ‘value for money’. Shared R&D, the company says, has already had a positive impact on Geely’s vehicle quality.
Similarly, Volvo is expected to benefit from its Chinese benefactor. Volvo will build a range of models at its Daging plant in China, including the current XC90 and XC60, and has been set a sales target of 80 000 units for 2014 (or an increase of 30 per cent).