Volvo agrees technology transfer to Geely

Zhejiang Geely Holding Group has signed a deal with Volvo Car, which the Chinese car maker acquired in 2010, giving it access to mid-sized vehicle platform or underpinning technology, interior air quality and safety technology, Reuters said.

The two companies had announced in March plans to discuss specific ways Geely could tap technology the Swedish arm plans to phase out over next few years.

Geely said at a briefing on Monday that both companies could enjoy "synergies" in the technology sharing. "Volvo car enjoys a leading advantage in a number of technologies… These technologies and experiences are valuable to Zhejiang Geely Holding Group's exploration into overseas market and its product quality improvement," it said.

In return, "Zhejiang Geely Holding Group's local market exploration experience and cost control experience can also be beneficial to Volvo Car's exploration in the Chinese market and increase in competitiveness," it said.

Zhejiang Geely Holding Group is parent of Hong Kong-listed Geely Automobile Holdings Ltd.

Geely did not mention specific ways it plans to use the technology from Volvo.

In an interview with the China Economic Times published on the Global Times, Liu Jinliang, Vice President and General Manager of Geely Holding Group, said Volvo's "technologies in terms of safety, drivetrain system, new energy and car platforms will be applied to Geely vehicles, indicating the automaker has gained strong support for its product quality improvement" under March's agreement.

Liu also said Volvo's former Director of Style Design Peter Horbury joined Geely in last November and now he is Vice President of Design.