Skip advert
Advertisement

Volvo and Geely to merge combustion engine operations

Volvo and Geely to combine combustion engine production into a single stand-alone business, allowing Volvo to focus on electrification

Volvo engine

Volvo and Geely plan to merge their combustion engine production operations into a single, stand-alone business. The new business will act as the main engine supplier to all the companies currently under Geely ownership – with the exception of Volvo, which will instead focus on the development of its new range of all-electric powertrains.

Advertisement - Article continues below

The new business venture will produce a range of combustion engines and hybrid powertrains for the Geely, Proton, Lotus, LEVC and Lynk & Co brands. Volvo and Geely also plan to supply third party manufacturers with their conventional powertrains.

Best electric cars on sale now

Volvo and Geely’s proposed business venture will poach around 3,000 employees from the former brand and 5,000 employees from the latter brand, from sectors such as research and development, manufacturing and finance. The pair also stress that no jobs will be lost during the merger.

Volvo has already begun its shift towards being a purely electric manufacturer. The Swedish company recently teaser its forthcoming, all-electric XC40, which will join the brand’s  XC40 T5 plug-in hybrid in the model’s line-up when it goes on sale in late 2020. By 2025, Volvo anticipates that half of its product line-up will be fully electric.

Hakan Samuelsson, Volvo’s President and Chief Executive, said: “Hybrid cars need the best internal combustion engines. This new unit will have the resources, scale and expertise to develop these powertrains cost efficiently.”

What do you make of Volvo and Geely’s latest business venture? Let us know in the comments section below…

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Recommended

Geely is coming to the UK, and its assault will start with EX5 SUV
Geely EX5 - front

Geely is coming to the UK, and its assault will start with EX5 SUV

Geely has looked to Lotus to ensure it's new electric SUV lives up to our driving expectations
News
2 Jul 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
New cars coming soon header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
23 Jun 2025
New Volvo EM90 2025 review: the ultimate SUV killer
Volvo EM90 - front

New Volvo EM90 2025 review: the ultimate SUV killer

Volvo has made an ultra-luxurious van. Intrigued? You should be, but sadly it’s for China only
Road tests
20 Jun 2025
Buckle up! Volvo's new 'super seatbelt' could transform car safety
Volvo EX90 - front cornering

Buckle up! Volvo's new 'super seatbelt' could transform car safety

New multi-adaptive seatbelt pretensions according to real-time crash data, as well as occupants’ dimensions
News
5 Jun 2025

Most Popular

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal
BMW M5 Touring - front action

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal

The BMW M5 Touring is M car royalty, with a thoroughly impressive PHEV powertrain. It’s our Deal of the Day for 29 June
News
29 Jun 2025
Electric car appeal is at its lowest since 2019
Opinion - Kia EV9 GT

Electric car appeal is at its lowest since 2019

From poor electric car sales to crashes in F1, Mike Rutherford thinks its been a crazy few weeks in the automotive world
Opinion
29 Jun 2025
Range Rover Sport SV gets massive £35k price drop as it enters series-production
Range Rover Sport SV Black - front

Range Rover Sport SV gets massive £35k price drop as it enters series-production

There’s also a new SV Black trim, and a Range Rover Sport Stealth Package for non SVs
News
1 Jul 2025