China’s Gili Motors announced a merger with Swedish Volvo.
On the 24th, Gili Motors announced a merger with Volvo and announced that the independent company structure of both companies will be maintained. At the same time, it said that the two companies will expand cooperation for four strategic goals: electrification, intelligence, networkization, and sharing in a large framework.
Gili Motors has been operating independently since acquiring Volvo for $1.5 billion in 2010, but the merger plans to further strengthen cooperation.
In summary, it is a model that strengthens cooperation and shares technologies in areas such as emerging technologies such as electric vehicles and autonomous vehicles under the current independent business structure and brand.
Gili Motors and Volvo explained that they will set up some kind of new management model and find an efficient way.
As part of this merger, Gili Motors and Volvo announced that they will pursue merger and cooperation in the powertrain, motor + controller + battery technology, and autonomous driving business.
The two sides will first establish a new merged company for the powertrain business through a sovereign merger method. It mainly focuses on the development of next-generation twin-motor hybrid power systems and high-efficiency internal combustion engines. In addition to applying this technology within both sides, it will also supply goods and services to third-party companies. The company goes into operation before the end of the year.
In the electric vehicle area, the two sides will jointly develop a modular architecture for next-generation electric vehicles based on electric vehicle architectures such as Gili Motors’ SEA and SPA2. It has the strength of modularization while sharing the achievements of core technologies. In the future, brands such as Volvo and Gili Motors, Lynk&Co and Polestar will all share this architecture. Both companies will share technology in the areas of motors, controllers, batteries and intelligent network networks, while using battery packs and electric drive systems together. Costs are also lowered through joint purchases.
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Furthermore, we will cooperate in autonomous driving technology. In the area of autonomous driving technology, each one’s R&D and achievements will be combined. Volvo’s autonomous driving software technology company Zenseact plans to jointly develop global leading autonomous driving solutions.
At the same time, it also creates a sales channel and after-sales service of the shared model. In the case of Link&Co, a brand created jointly by the two sides, it announced its entry into Europe at the end of last year, and is expanding its service area using Volvo’s overseas distribution resources.