Volvo Cars and Geely intend to merge their existing combustion engine operations into a stand-alone business in order to establish a new global supplier that will seek to develop next generation combustion engines and hybrid powertrains. The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric range of premium cars. By the middle of the next decade Volvo Cars expects half its global sales to be fully electric and the other half hybrid, supplied by the new unit. The planned new business would represent a significant industrial collaboration between Volvo Cars and Geely with substantial operational, industrial and financial synergies. Volvo Cars believes the electrification of the automotive industry will be a gradual process, meaning there will be significant ongoing demand for efficient hybrid powertrains alongside fully-electric offerings.
- Volvocars.com -