Volvo and Geely to Merge Engine Units in Electric Car Push
- Operation will be open to supplying powertrains to others
- CEO says merger frees Volvo to focus on electrification drive
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Volvo Cars and China’s Geely plan to merge their engine operations into a standalone company, a step the Swedish automaker says will cut costs as it shifts to a fully electrified lineup.
The combined unit would supply two million diesel and gasoline-powered engines, compared with the 600,000 Volvo produces today, giving the two companies more scale to reduce material costs. It could also supply other car manufacturers, though none have expressed interest yet, Volvo Chief Executive Officer Hakan Samuelsson said.