Volvo and Geely are collaborating on a new subcompact car destined for Western markets, as part of Geely's plan to boost its brand perception outside of China and capitalise on the significant technological know-how of Volvo, which it owns.
According to the Wall Street Journal, the majority of engineering work is taking place in Sweden, albeit by Geely's own engineers.
Volvo's resources and engineers are being tapped into, though, and their expertise in safety technology will be valuable for Geely as it chases improved occupant protection.
The Sweden-based Geely subsidiary China Euro Vehicle Technology (CEVT) is the epicentre of the new subcompact's development, and CEVT is also gearing up to design a new C-segment modular architecture for both Volvo and Geely.
This new architecture will be crucial for Volvo in particular, as it moves away from Ford-derived platforms and powertrains. The eventual replacement for the V40 (pictured) will be a likely recipient of the new platform.
Whether a Volvo or a Geely will be the first to utilise it is unclear, but expect to see the new jointly-developed platform make its debut in a production car in the next four years.
As for what Geely's Western-market subcompact will be called, that's anyone's guess. Other details such as powertrain options, styling and even the launch date are also still shrouded in mystery.