The Swedish and Chinese brands intend to combine their efforts for the development of internal combustion engines in private business to create a new global provider, which will seek to develop a conventional internal combustion engine next-generation hybrid powertrain.
The proposed new business will pave the way for Volvo Cars to focus on the development of its all-electric range of premium cars. Volvo Cars builds all-electric range of products within the framework of the company’s commitment to put sustainable development at the heart of its activities. By the middle of next decade the company expects that half of global sales will come from the all-electric vehicle, and the other half will be hybrid.
For Geely planned new venture means that technologically advanced and efficient internal combustion engines and hybrid powertrains will be available, Geely Auto, Proton, Lotus, LEVC and LYNK & CO. In addition, supplies can be delivered and third-party brands that will ensure sustainable production growth.
The new company will employ about 3 000 employees of Volvo Cars and about 5 000 employees of Geely’s operations with internal combustion engines, including research and development, procurement, production, it and financial functions. Reductions in workforce are expected.
“Hybrid cars need better internal combustion engines. This new unit will have the resources, scale and experience for the efficient design of these powertrains,” said håkan Samuelsson, President and CEO of Volvo Cars.