Volvo, Geely working on shared architecture

Geely and its Volvo ward are working at developing a new compact car architecture that will be shared by both companies.

For Volvo, this means a smaller luxury car, possibly a few. The platform will be modular, as is practically required in this day and age, ready to underpin different body styles or—if need be—an entirely new lineup.

And for Geely, it could even be used across brands aimed at different audiences. Mum is the word on this new architecture, but both companies will share the result of putting Volvo's R and D Center in Gotheborg, Sweden, to work—while, simultaneously, using Geely's widespread Chinese suppliers. "Leverage global technological resources in different business units," read the press release, "enhancing our ability to continuously innovate."

This may mean more sharing than Volvo brand agonistes may be ready for. Chinese parts? In my Swedish car? What is this, an Asian/Swedish fusion food truck on Wilshire?

Consider the Chinese car, all too frequently lambasted for, well, being made in China. Geely recently exhibited some corporate muscle over Volvo by casting doubt over its staid nature, thereby launching a minor clash of cultures the likes of which have not been seen since the first Rush Hour. We have the case of a large corporate entity, at odds with the fundamental corporate philosophy of its subservient company, imbuing it with common parts and platforms under the banner of synergy and brand survival. Sound familiar?

We understand why it's necessary. Still, we hope this strategy works out better than its it did for Volvo's former Swedish rival.

By Blake Z. Rong