Chinese automaker Geely may be about to introduce a new mainstream brand selling cars developed with Volvo.
Since acquiring the Swedish automaker from Ford Motor Company [NYSE:F] in 2010, Geely has set about transforming it into a luxury marque.
That leaves room for Geely to compete in mainstream segments.
Geely currently has a number of brands in its home market including a namesake brand, and last year its combined sales totaled over half a million vehicles. However, while Geely’s existing brands are targeted at the Chinese market, the automaker is reportedly planning a new brand with a global focus.
Sources have revealed to Reuters that Geely is looking to launch the new brand, code-named L, initially in China and eventually in Europe and the United States.
The brand’s first cars will reportedly be based on the new CMA platform for compact cars that Geely is developing with Volvo. Volvo will use the platform for its next-generation compacts starting with a new XC40 crossover.
Spokespeople for Volvo and Geely declined to comment on the report.