automotive suppliers Volvo and Geely want to found automotive suppliers
Volvo Cars and its Chinese parent company Geely wants to combine their know-how in the field of combustion engines in an independent company. This is to result in a global supplier.
The Swedish car manufacturer Volvo and it's Chinese parent company Geely wants to set up a supplier of engine technology together. To this end, the car manufacturers want to merge and further develop their activities in the area of combustion engines and hybrid drives. According to a press release, the partners plan to supply third-party manufacturers in addition to the Geely brands Lotus, Proton, Lynk&Co. and LEVC.
The new company will provide Volvo Cars with more capacity for the development of fully electric premium vehicles. The Swedes are working on a product range of fully electric cars. By 2025, half of global sales will be generated by all-electric vehicles, the other half by hybrids. The new business is to supply the technology for this. "Hybrid cars need the best combustion engines. This new unit will have the resources, size, and expertise to develop these powertrains cost-effectively," says Volvo boss Håkan Samuelsson.
Employees for the Volvo Geely supplier
Volvo will employ around 3,000 people and Geely's combustion engine division around 5,000 - including R&D, procurement, manufacturing, IT and finance. The plans are still under development and are subject to trade union negotiations and approvals from the board and authorities.
This article was first published in German by Automobil Industrie.