Volvo Cars and Geely intend to merge their combustion engine operations
Volvo Cars and Geely intend to merge their existing combustion engine operations into a stand-alone business in order to establish a new global supplier that will seek to develop next generation combustion engines and hybrid powertrains.
The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric range of premium cars. For Geely, the planned new entity means technologically-advanced and efficient combustion engines and hybrid powertrains would be available to Geely Auto, Proton, Lotus, LEVC and LYNK & CO.
The planned new stand-alone business can also supply third party manufacturers, providing possible growth opportunities.
Both Volvo Cars and Geely are in the process of carving out their ICE (Internal Combustion Engines) operations into new units within their respective organisations, as a first step towards a merger of the two into a combined new stand-alone business.
The detailed plans of the new business are under development and subject to union negotiations as well as board and relevant authority approvals.