Volvo and Geely aren’t ready to tie the knot just yet.
After a year-long study, the companies concluded “deeper cooperation” and preserving “existing separate corporate structures” is the best way forward to grow and tackle electric vehicle development.
The move also leaves the door open to external investment in – or a partial float of – Volvo.
In this week’s announcement the companies note they may “explore capital market options”, and the current structure allows “potential new investors in Volvo Cars and Geely Auto to value their respective standalone strategies, performance, financial exposure and returns”.
While Volvo Cars and Geely are part of the larger Zhejiang Geely Holding Group, Volvo operates with a large degree autonomy.
The two carmakers share control in a number of other brands, including Lynk & Co and Polestar, and collaborate on purchasing and platforms.
These efforts will continue into the future, with the upcoming electrified SPA2 platform and all-electric SEA architecture shared amongst the group’s various brands.
Volvo and Geely have also decided to press ahead with a merger of their powertrain divisions, which will supply petrol engines, transmissions and hybrid drivetrains for all group members, as well as interested external parties.
Zhejiang Geely Holding Group purchased Volvo Cars from Ford in 2010 when the Blue Oval was busy offloading its luxury brands in order to stave off bankruptcy.