Volvo and Geely Have Plans to Develop Combustion Engines
Volvo and Geely have plans to establish a joint venture with the aim of developing combustion engines and hybrid powertrains. The Swedish car maker wants to focus on electric powertrains.
Chinese holding company Geely and its subsidiary, Swedish car maker Volvo, are planning to establish a combustion engine and hybrid powertrain business unit. While Volvo Cars wishes to further develop the production of luxury electric cars, Geely plans to use the joint venture to supply combustion engines and hybrid powertrains for its Geely Auto, Proton, Lotus, LEVC and Lynk & Co brands. The unit in question will operate as a stand-alone business and could potentially provide parts to aftermarket suppliers.
It's estimated that around 3,000 Volvo workers and 5,000 workers from Geely's combustion engine sector will work for the new company, which will include research and development, purchasing, manufacturing, IT and finance. Volvo regards electrification as a transition process, in which hybrid powertrains will serve as a stepping stone. "Hybrid cars need the best internal combustion engines. This new unit will have the resources, scale and expertise to develop these powertrains cost-efficiently", said Håkan Samuelsson, Volvo Cars' president and chief executive.