Volvo, Geely to Share Modular Platform

A new R&D center in Gothenburg, Sweden, is developing a modular architecture and components that will underpin the next-generation C-segment small cars for Geely Automotive Co. and Volvo Cars, both of which are owned by Zhejiang Geely Holding Group Co.

The modular architecture developed in Gothenburg will be engineered to meet international vehicle standards. Geely says the strategy will help cut product development costs, testing and procurement "without the slightest compromise on brand value."

But Geely emphasizes that its two brands will continue to target different markets: Volvo for the global premium car market and Geely for China's mass market.

Some 70 engineers drawn from Volvo and Geely staffs are already at work at the center, which is expected to grow to 200 engineers by mid-2014.