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.

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.

Advertisement - Article continues below

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…



Volvo XC40 Recharge - front 3/4 static

Volvo not planning to pay any CO2 fines

New Recharge models set to bring Volvo's CO2 average down below the EU target of 95g/km
6 Feb 2020
Volvo and Isuzu merger

Volvo and Isuzu enter commercial vehicle partnership

The two manufacturers will sign an agreement, which could see the Volvo-owned UD Trucks brand transferred to Isuzu Motors
18 Dec 2019
Volvo XC40 - front charging

Volvo offers free electricity for new plug-in customers

Volvo is offering a year’s supply of free electricity with any of its new plug-in hybrid models from now until 30 June 2020
8 Nov 2019
Volvo XC40 Recharge - front 3/4 static

Volvo uses blockchain tech over cobalt ethics supply

Most cobalt is sourced from the Democratic Republic of Congo, some by child miners; Volvo’s move aims to address ethics concerns
6 Nov 2019

Most Popular

Hyundai Kona electric front
Hyundai Kona Electric

Hyundai Kona Electric to get increased range from July

UK-delivered Hyundai Kona Electrics will be outfitted with a handful of mechanical revisions, boosting the SUV’s maximum range to 300 miles
18 Mar 2020
Hyundai i20

New 2021 Hyundai i20 N to rival Ford Fiesta ST with 200bhp

New Hyundai i20 N to join i30 N in brand’s hot hatch line-up and our exclusive images preview how it could look
2 Apr 2020

New SEAT Leon 2020 review

The all-new SEAT Leon hatchback impresses with its blend of sporty handling and cutting-edge technology
3 Apr 2020