Volvo Cars and Geely are set to merge their combustion engine operations into a standalone business. The new company will develop next-generation combustion engines and hybrid powertrains for global supply.
The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric premium cars. For Geely, it means new ICEs and hybrid powertrains will be available to Geely Auto, Proton, Lotus, LEVC and Lynk & Co. The new standalone business will also supply third party manufacturers.
The business is expected to generate 8,000 job roles, taking 3,000 employees from Volvo Cars and around 5,000 employees from Geely’s combustion engine operations.
Volvo and Geely are now in the process of separating their ICE operations into new units within their respective organizations, as a first step toward a merger of the two into a combined new standalone business.
“Hybrid cars need the best internal combustion engines,” explains Håkan Samuelsson, Volvo Cars’ president and chief executive. “This new unit will have the resources, scale and expertise to develop these powertrains cost efficiently.”