The Volvo Car Corporation is well known throughout the world due to its Automobiles contributions, though the company is no more the part of the Volvo Group however still it continues to manufacture some of the best cars of the world. The Volvo Car Corporation started its operations in Sweden back in the year 1927. The company dominated the world market for decades. In 1999 the company became the part of Automobile Giant ford. The corporation went well for almost 10 years when in 2010 the ford motor group also sold the company to china’s Zhejiang Geely Holding Group. In this article we will discuss a recent initiative taken by Volvo.
Though there have been a lot of technological initiatives taken by Volvo Car Corporation throughout the years. In this article the initiative which we will look into is more strategic rather than technological. The Volvo Car Corporation has recently decided to join forces with another emerging and popular company of the world by the name of Ubar. The initiative will be the subject of our discussion in the paragraphs below
Volvo and Ubar:
The Volvo Car Corporation and Ubar have made a critical strategic decision. The plan of both the companies is to initiate a joint project related to autonomous cars which will also include driverless cars. Both the companies have signed an agreement in this regard. The overall expense related to the project is USD 300M.
As per the agreement the same base vehicle will be utilized by both Volvo and Ubar as far as the next stage of the car strategies (Autonomous) is concerned. According to the agreement the autonomous driving systems will be developed by Ubar and fixed into the base vehicle of Volvo. Similarly the similar base vehicle will be utilized by Volvo for its autonomous car strategy’s next stage. The next stage of Volvo involves automatic driving.
The impact of the joint Initiative:
The joint initiative of Volvo and Ubar will have a significant impact on the automobile industry. The combination of Ubar and Volvo can turn out to be a never ending partnership of industrial nature. The SPA will be used for the manufacturing and development of the base vehicle. SPA actually means Scalable Product Architecture which is one of the most cutting edge car architecture currently existing in the world we live in. The famous Volvo automobiles such as XC90 SUV, V90 premium estate and S90 premium sedan were also developed via SPA.
More about SPA:
In 2010 Volvo Car Corporation launched its industrial transformation program. The program took USD 11billion. During this program SPA was developed. The preparation of SPA took some of the most cutting edge technologies, similarly the connectivity developments and electrification was also cutting edge. The SPA was the technology which attracted the company like Ubar to Volvo.
Time will tell how this project will go? What we can say is that Volvo has never been afraid of taking initiatives and its whole history is full of innovations and strategic decisions. We hope that the collaboration will result in a positive way for the world and general customers of both the companies.