Progress is said to be being made on a new compact vehicle architecture that will be shared by Volvo and Geely.
IHS Automotive perspective | |
Significance | Progress is said to be being made on a new compact vehicle architecture that will be shared by both Volvo and Geely. |
Implications | The move will enable Volvo to remain in the premium C segment category in which it currently uses Ford's C1 architecture, while Geely will gain some benefit from using the basis of cutting-edge platform technology for its own brand vehicles. |
Outlook | The platform will help the brands' presence in segments that they are currently involved in as well as moving into new categories. |
Progress is said to be being made on a new compact vehicle architecture that will be shared by both Volvo and Geely, reports Autocar. Development is being undertaken at China Euro Vehicle Technology (CEVT) based in Göteborg (Sweden), a wholly owned subsidiary of their parent Zhejiang Geely Holding Group. On its website it is described as "an engineering and development centre for future C-segment cars, addressing the needs of both Volvo Cars and Geely Auto."
According to the enthusiast publication, CEVT will cover key components of this new architecture, including platform, powertrain and driveline components as well as the upper body structure and exterior design. In order to achieve the right balance for what look set to be cost-competitive Geely models and premium Volvo models, the modular nature of platform uses a philosophy known as "common interfaces". This has been brought into the organisation by chief executive officer (CEO) Mats Fägerhag who had been involved in the development of Saab Automobiles' Phoenix architecture prior to its bankruptcy under Swedish Automobile, and which was based on a concept from truck-maker Scania, which was advising Saab at the time. Known by CEVT as "modular technology", it initially focuses on the base structure being scalable in length, width, height, wheelbase and wheel size. This will be followed by the development of different modules to suit different price points and the performance and the technological demands required at each level. Indeed, the current job openings on the organisation's website include roles for hybrid powertrain engineers.
This should enable a range of new models to be constructed from this modular toolkit of components, as well as enable them to be brought to market swiftly. For Volvo, they are expected to include the replacement for the Volvo V40 as well as a compact crossover known as XC40. Geely, on the other hand, will use this architecture to underpin a range of new C-segment vehicles including some that will be sold in Europe. Nevertheless, the report adds that sales of any model based on this platform will not take place for at least another two and a half years.
Outlook and implications
Plans for an organisation that would undertake the research and development (R&D) of such an architecture have been in the works since February 2013, and the technical centre in Göteborg opened in September the same year. The platform is known as Common Modular Architecture (CMA) and will enable Volvo to continue competing in the premium C CAR category. The current V40 uses former owner Ford's C1 platform. However, it would be too much of a stretch for it to use its new Scalable Product Architecture (SPA) platform which underpins the latest XC90 sport utility vehicle (SUV), hence the reasons for developing its own. The use of modules will enable Volvo and Geely to use the same base but meet different consumer demands. This could include everything from differing dynamic performance to gaining a different look for the vehicle.
IHS Automotive expects the first vehicles to be produced using this architecture to come from the Geely brand and being used in a new C-segment sedan and SUV that will come in 2017, and will be targeted at categories which are exceptionally popular in China. This will then be followed by a hatchback the following year. Total production of Geely vehicles using this architecture – all of which will be built in China – will reach over 95,000 units per annum (upa) by 2020 and will continue growing beyond. Volvo will begin building its first vehicle on the CMA platform during 2018 which is forecast by IHS Automotive to be the new XC40 compact SUV. This will take the brand more seriously into this space, with which it currently touches on with V40 XC, a version of its compact hatchback with crossover styling traits. By 2018, the global market for such vehicles are expected to hit 11.7 million units from 9.3 million units last year, with China sales expected to touch 4.4 million units. For this reason, IHS Automotive expects this model to be built at a Chinese site alongside its site in Ghent (Belgium). Production of this model globally will hit 75,000 units by the end of the decade. The replacement for the V40 hatchback will finally start production in 2019 and will take off where the previous model left off with production globally – although predominantly at Ghent – hitting 93,500 units by the end of the decade according to our forecasts.