Volvo has announced a joint venture with Geely Auto to develop an all-new vehicle platform.
The new platform will be aimed at the next generation of C-segment vehicles for both companies.
The platform should allow Volvo the freedom to push ahead with its XC40 compact SUV. The company previously told Autocar that it would like to build the model, which would rival the Range Rover Evoque, but that it didn't have a suitable engineering architecture.
Geely Group says the platform will "help achieve synergies through economies of scale and scope in terms of development, testing, and procurement, without the slightest compromise on brand value."
Volvo says the new architecture will not be used to underpin vehicles in an as-yet un-named new brand, which would sit in-between Volvo and Geely.
Expected to underpin smaller models in Volvo's range, the new platform will act as a smaller alternative to Volvo's new Scalable Product Architecture platform.