Geely and Volvo call off merger in favour of increased collaboration through separate corporate structures

Firms will preserve their structures while cooperating more closely on power trains, electrification and autonomous driving tech, according to a joint statement

While they’ll no longer pursue a combination as announced in February of last year, new listings could be on the table

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The automatic welding line of a manufacturing base of Geely Auto in Ningbo in eastern China’s Zhejiang province on October 25, 2018. Photo: Xinhua

Published: 10:34pm, 24 Feb 2021Updated: 3:56am, 25 Feb 2021

China’s Geely Automobile Holdings and its Swedish affiliate Volvo Cars will collaborate more closely on electric and self-driving vehicles while putting off earlier plans to merge.

The manufacturers will preserve their separate corporate structures while cooperating more closely on power trains, electrification and autonomous-driving technology, according to a joint statement. While they’ll no longer pursue a combination as announced in February of last year, new listings could be on the table.

“The deeper collaboration will enable existing stakeholders and potential new investors in Volvo Cars and Geely Auto to value their respective stand-alone strategies, performance, financial exposure and returns,” the companies said Wednesday. “We will also have the opportunity to explore capital market options.”

Li Shufu, chairman of Zhejiang Geely Holding Group, during a Bloomberg Television interview on the sidelines of the 13th National People's Congress (NPC) in Beijing, on Thursday, March 8, 2018. Photo: Bloomberg

Billionaire Li Shufu has been forging ties with a vast array of companies as Geely pushes to stay abreast of the two great shifts hitting the industry: electrification and automation.

In less than a month earlier this year, Geely agreed to collaboration pacts with search-engine heavyweight Baidu, Apple’s Taiwanese manufacturing partner Foxconn Technology Group, and Tencent Holdings.

Geely and Volvo call off merger in favour of increased collaboration through separate corporate structures

Firms will preserve their structures while cooperating more closely on power trains, electrification and autonomous driving tech, according to a joint statement While they’ll no longer pursue a combination as announced in February of last year, new listings could be on the table

Firms will preserve their structures while cooperating more closely on power trains, electrification and autonomous driving tech, according to a joint statement

While they’ll no longer pursue a combination as announced in February of last year, new listings could be on the table