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
Skip advert
Advertisement

Recommended

Renault and Volvo to create ‘revolutionary’ next-generation Flexis electric vans
Volvo and Renault Flexis van range
News

Renault and Volvo to create ‘revolutionary’ next-generation Flexis electric vans

The companies will work together to create a family of electric vans based on an EV-dedicated skateboard platform
4 Apr 2024
Best new cars coming in 2024
Best new cars coming in 2024 - header image
Best cars & vans

Best new cars coming in 2024

There are some big new models from the likes of BMW, Citroen, Dacia, Ford, MINI, Skoda and more on the way in 2024
12 Mar 2024
New Volvo P1800 Cyan GT is the ultimate Swedish restomod
Volvo P1800 Cyan GT - front
News

New Volvo P1800 Cyan GT is the ultimate Swedish restomod

Cyan Racing has revealed the latest version of its iconic P1800, based on the Volvo cult classic
15 Feb 2024
Volvo P1800 (Mk1, 1961-1963) icon review: not fast, but just look at it
Volvo P1800 - front tracking
Road tests

Volvo P1800 (Mk1, 1961-1963) icon review: not fast, but just look at it

Volvo’s second take at a sports car was a real hit
13 Feb 2024

Most Popular

‘Dacia Zen’ seven-year warranty brings added peace of mind
Dacia Duster - tailgate
News

‘Dacia Zen’ seven-year warranty brings added peace of mind

The value brand’s new warranty is also available on used cars, as well as for existing Dacia customers
16 Apr 2024
Car Deal of the Day: Mercedes EQC offers luxury EV motoring for £327 a month
Mercedes EQC - front cornering
News

Car Deal of the Day: Mercedes EQC offers luxury EV motoring for £327 a month

Mercedes’s EQC showed that the German firm was serious about electric cars and it’s our Car Deal of the Day for Monday 15 April
15 Apr 2024
New 2024 Audi A3 takes the fight to BMW and Mercedes with £32k price tag
Audi A3 Saloon - front action
News

New 2024 Audi A3 takes the fight to BMW and Mercedes with £32k price tag

The updated Audi A3 is available now, with the hot S3 version due from May
16 Apr 2024