New Modular Architecture to be developed for both Volvo Cars and Geely Auto

 New Modular Architecture to be developed for both Volvo Cars and Geely Auto

PR Newswire

GOTHENBURG, Sweden, Sept. 16, 2013

GOTHENBURG, Sweden  , Sept. 16, 2013 /PRNewswire/ - Geely Group is excited to
announce that the joint R&D Centre of Geely Auto and Volvo Cars in
Gothenburghas begun operations following a decision madeearlierthis year.
The Centre will embark on a focused program developing a modular architecture
and components for the next generation leading C-segment cars for both Geely
Auto and Volvo Cars.

(Photo: http://photos.prnewswire.com/prnh/20130916/CN79390 )

This newly launched joint R&D Centre is an important step in consolidating
Geely Group's global footprint. In line with our strategy, the Group aims to
leverage global technological resources in different business units to build
R&D capabilities and teams, enhancing our ability to continuously innovate.
Developed in accordance with international standards, the modular architecture
will help achieve synergies through economies of scale and scope in terms of
development, testing, and procurement, without the slightest compromise on
brand value. With the independent platform, Volvo Cars will continue to focus
on the global premium car market, while Geely Auto will remainfocused onthe
mass market.

"The modular architecture is an important springboard for Geely Group's
sustainable development globally and benefits the growth of both Volvo Cars
and Geely Auto. The architecture will provide Geely Auto with the tools to
improve its products and technology significantly. Capital investment in the
Centre will help drive Volvo Cars' technological advances. Access to Geely
Auto's OEM suppliers in Asia will also be made available to Volvo Cars for
procurement optimisation as needed," said An Conghui, President of Geely
Group. "We have put together outstanding technical and management teams and
provided them with first-class working conditions and facilities, to ensure
the success of the cross-brand modular architecture strategy."

Mats Fagerhag, CEO of the new R&D Centre, commented: "The modular design which
allows several different vehicle platforms to be developed from one single
architecture has been a proven approach in the industry. This will ensure
tailor-made solutions to multiple brands for various market segments. This
joint R&D Centre with its combined strengths will enhance our competitiveness
in technological leadership."

Located in Lindholmen Science Park, Gothenburg, the Centre will take the
advantage of industry-specific capabilities and abundant resources available
in the region. Geely Group plans to invest heavily in the Centre to support
its research and development as well as daily operations. The Centre has been
staffed by existing engineers from Geely Auto and Volvo Cars as well as
externally recruited talent to further strengthen the team. At present,
approximately 70 engineers have started working in the Centre, we anticipate
the number to reach its full scale of 200 by the second half of 2014.

SOURCE Zhejiang Geely Holding Group

Contact: Geely Holding Group: Victor Young: +86 159 0662 0333,
victor@geely.com; Brunswick Group, +44 20 7404 5959; Annette Brodin Rampe,
Stockholm, +46 738 524 231, abrodinrampe@brunswickgroup.com; Tong Zhao, Hong
Kong: +852 9011 8258, tzhao@brunswickgroup.com, Yue Yu, Beijing: +86 139 1071
9924, yyu@brunswickgroup.com