Beijing, Sep 14 (IANS): A European research and development centre jointly built by the Swedish carmaker Volvo and its Chinese owner Geely Holding Group have started trial operations.

The Gothenburg-based centre in Sweden will develop a new modular architecture and set of components for the future C-segment cars, taking into account the requirements of both Volvo and Geely, reported Xinhua.

The centre will allow Geely to improve its product quality and functions, and Volvo can bring in its advanced technologies, said An Conghui, president of Geely Holding Group.

Currently about 70 engineers have started work at the centre, which is expected to employ about 200 engineers in the latter half of 2014.

The joint research centre will not jeopardise brand integrity or individual product development. Geely will focus on medium and low-cost cars while Volvo will focus on the luxury car market.

The opening of the centre comes just two days after the London Taxi Company resumed production of the famous black cab about seven months after the business was rescued by Geely.

Geely acquired Volvo Cars from the US auto giant Ford Motor for $1.5 billion in August 2010. It acquired Manganese Bronze Holdings, manufacturer of the iconic London Black Cab, for $17.44 million in February 2013.