Volvo Cars and its parent Geely are planning to merge their existing combustion engine operations into a new, stand-alone business, with a goal to become a new global supplier for next generation combustion engines and hybrid powertrains.
Meaning, the proposed new business would supply to third party manufacturers as well, in addition to Geely-owned brands such as Proton, Lotus, LEVC and Lynk & Co. One of the ideas behind the merger is to clear the way for Volvo Cars to focus on developing its all-electric range of premium cars. By the middle of the next decade, Volvo expects half its global sales to be fully electric and the other half hybrid, supplied by the planned new unit.
The proposed new business is expected to employ approximately 3,000 employees from Volvo Cars and around 5,000 employees from Geely’s combustion engine operations including R&D, procurement, manufacturing, IT and finance functions. No reductions in the workforce are anticipated.
Hybrid cars need the best internal combustion engines. This new unit will have the resources, scale and expertise to develop these powertrains cost efficiently. – Håkan Samuelsson, President and Cheif Executive, Volvo Cars
The detailed plans of the new business are under development and are subject to regulatory approvals.
Also Read: Geometry A is an all-electric sedan from Geely’s new EV brand
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