Swedish carmaker Volvo has unveiled its new S90 in Shanghai and also announced a series of moves deepening cooperation with its Chinese parent Zhejiang Geely Holding Group.

Volvo unveiled two stretched variants of its recently launched large S90 premium sedan, including the S90 Excellence. The new model is Volvo's attempt to woo the luxury end of the Chinese market.

Volvo and Geely are also set to start producing cars at a joint assembly plant in Taizhou in eastern Zhejiang Province.

Volvo CEO Hakan Samuelsson says the tie-up would seek to strike a balance between integration and maintaining two distinct brands. 

"It's a balance, synergies, economy of scale, versus diluting the brands. So if you go all the way you have exactly the same car, you just have two batches of it in what we call batch engineering, I mean that's definitely too far. And then on the other side if you have nothing in common then you are back to two individual cars. So I think you have to land somewhere in between where you share known brand identity, critical components but still at the end it should be very clear one hundred percent Volvo and one hundred percent Lynk & Co." Hakan Samuelsson,CEO of Volvo said.