As far as automotive marriages go, the Volvo-Geely union has been a strong one. Both automakers benefit from each other's technologies and facilities. Because of that, there were talks of the two automakers merging a few months ago.

Now, Volvo and Geely have another announcement. Instead of pushing through with the merger, the two decided to strengthen their ties. With that, the move allows both automakers to preserve their existing separate corporate structures.

Volvo-Geely scraps merger, to strengthen ties instead image

According to a joint statement, the deeper collaboration will enable existing stakeholders and potential new investors in Volvo Cars and Geely Auto to value their respective standalone strategies, performance, financial exposure, and returns. This decision was welcomed by both Geely and Volvo.

“Having evaluated different options to realize value, we concluded jointly that a collaboration model between two standalone companies is the best way to secure continued growth and at the same time achieve technological synergies in many areas. We welcome the opportunity of further and deeper collaboration with Geely Auto,” said Håkan Samuelsson, president, and CEO of Volvo Cars.

Volvo-Geely scraps merger, to strengthen ties instead image

“Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses. This will enable Geely Auto to accelerate its global expansion, to capitalize on our strengths in China and develop a new generation of world-class new energy vehicles and associated mobility services,” adds An Conghui, president and CEO of Geely Auto

With that, the two automakers are working together for their next-generation modular platforms. Dubbed SEA and SPA2, these are electric vehicle platforms that will serve as the basis for future Volvo and Geely electric vehicles. They will also use that chassis for Lynk & Co and Polestar branded vehicles. Their collaboration will also include the development of electric vehicle hardware and software, car-sharing platforms, and autonomous driving technologies.