Volvo and Geely Team-Up for New Brand 0

Volvo and Geely Team-Up for New BrandPlease say that you have heard of the car manufacturer Geely? They have produced wonderful cars such as the TX4 and the GC5. So you haven’t heard of them right? Well if you haven’t, Geely are a huge Chinese car manufacturer who bought Volvo in 2010.

Volvo and Geely have now teamed up in order to create a new brand of car that would have the potential to dominate the Chinese car market. The brand, codenamed ‘L’ is set for release in 2017 with a brand new SUV. The SUV could prove highly popular with the combination of the European car manufacturer Volvo on board to help. There has been very little information about what the SUV will look like, or how it will perform. But, it will be based on Volvo’s innovative Compact Modular Architecture (CAM). The CAM provides the perfect base and chassis for the car to be built on. Other than that, there has been no concept images or specifications released to date.

It can however be expected that the vehicle will do well. Since Geely took over Volvo in 2010, they have seen their own profits increase by 22 percent and Volvo have seen their profits increase three fold. So, the partnership is blossoming, but is there a solid business plan in place so the L-Brand can dominate the Chinese car market? Yes, it has been reported that Geely will attempt to take on the domestic division in China whilst Volvo, have to take on the likes of Mercedes, Audi and BMW in the luxury department. Simple and straightforward, for the time being anyway.

Can it actually be done? Servicing Stop cannot comment at the moment. With no concepts or specifications released, it is too hard to gauge. But, by releasing an SUV, which is proving to be extremely popular in China at the moment, is a very smart idea. All we can really say is good luck to the two companies.