Volvo and its Chinese owner Geely announce a merger of their "thermal engine" business to let Volvo manage only the design of electric powertrains.
The development of thermal engines (for diesel, gasoline and plug-in hybrids) will soon no longer be Volvo's business. The Swedish manufacturer announces a merger with its Geely for the part thermal engines. Clearly, Volvo's plug-in and thermal hybrids in the coming years will have Chinese blocks coming from Geely-Volvo under the hood.
Specifically, Volvo will now only look after the research and development of "100% electric vehicles".
A new entity that will not only serve Volvo: " for Geely (owner of Volvo), this new entity will allow Geely Auto, Proton, Lotus, LEVC and LYNK & CO to have technologically sophisticated and efficient engines as well as hybrid powertrains, the company will also be able to supply third-party manufacturers, opening up potential growth prospects , "the brand said in a statement.
The new joint venture does not have a name yet, but Volvo is now clearly distancing itself from the engine. Logic, since it must be remembered that the manufacturer is targeting 50% of its sales in 100% electric by 2025.