Volvo Trucks is said to be looking to form closer ties with Geely in the Chinese market, according to a Bloomberg report.
Geely became the Swedish truck manufacturer’s largest shareholder back in December 2017, with a $3.3 billion deal. At the time, the Chinese automaker asserted that it was looking to contribute expertise in autonomous driving, electrification, and connectivity.
“We see a lot of areas where we feel that Geely can add both insights and competence,” Volvo Group chief executive Martin Lundstedt told Bloomberg, adding that they could help Volvo in China and with “certain technologies.”
Volvo has yet to detail any projects it could collaborate with Geely on. At the same time, it’s worth noting that Geely boss Li Shufu is also the largest shareholder in Daimler, and the two have agreed to work together on car-sharing and ride-hailing services for the local market.
Lundstedt refused to detail specifics about talks, other than saying “experience and what has been expressed has been very positive.”
Beyond its car business, Volvo is a leading truck manufacturer and also operates a construction-equipment division. Last year, the latter contributed a third of operating profit for the entire Volvo Group and generated a 13.4 per cent margin on revenue, easily exceeding the 10.5 per cent return on sales at the Volvo truck division.
Alongside its introduction of new electrified passenger cars, Volvo has developed a series of “green” trucks and, in February, kicked off deliveries of its very first all-electric models. Volvo intends on commencing series production of the FL Electric and FE Electric trucks in the second half of this year.