Volvo is looking for a partner to share development of its future small car range, according to a report by the Financial Times.
The car maker, which has been owned by Geely since 2010, when the Chinese company purchased it from Ford, is keen to forge a new relationship to help divide the costs of producing new cars.
“We are open for partners,” Volvo’s chief executive Stefan Jacoby confirmed to the FT. “We are open for collaboration in a win-win situation for sharing platforms, for sharing engines and for a general higher scale of economics.”
Jacoby said Volvo had some potential partners in mind, but hadn’t entered into any detailed discussions yet.
Volvo’s boss has taken action to streamline the company since he joined from Volkswagen in August 2010, encouraging the development of a modular range of engines and a model platform that can underpin anything from a hatchback to a large saloon.
He also made a new small car a priority and Volvo will launch its new V40 at the Geneva motor show in March. The car has been pushed up the product cycle ahead of a replacement for the ageing XC90 full-size SUV.
The five-door hatchback will give Volvo a much-needed rival to the BMW 1-series and Audi A3.