Joint Geely, Volvo R&D center begins trial run

HANGZHOU -- A European research and development center jointly built by Swedish carmaker Volvo and its Chinese owner, Geely Holding Group, began trial operations on Friday, according to Geely.

The center, based in Gothenburg, Sweden, will develop a new modular architecture and set of components for future C-segment cars, addressing the needs of both Volvo and Geely.

The center will allow Geely to improve its product quality and functions, and Volvo can prompt industrialization of its advanced technologies and tap into Geely's supply network in Asia, according to An Conghui, president of Geely Holing Group.

Currently about 70 engineers have started work in the center. The center is expected to employ about 200 engineers in the last half of 2014.

The joint research center will not jeopardize brand integrity or individual product development. Geely will focus on medium and low-cost cars while Volvo will focus on the luxury car market.

The opening of the center comes just two days after the London Taxi Company resumed production of the famous black cab about seven months after the business was rescued by Geely.

Geely acquired Volvo Cars Corp. from US auto giant Ford Motor for $1.5 billion in August 2010. It acquired Manganese Bronze Holdings, manufacturer of the iconic London Black Cab, for 11.04 million British pounds ($17.44 million) in February 2013.