Volvo and Geely to merge combustion engine operations

Published: 07 October 2019

► Preparing for the future 
► Part of a push toward EV R&D
► ICE engines availble to Geely family

In a move that’ll surprise precisely no one, Volvo has revealed it’ll be pooling resources with its parent company Geely – but specifically in the area of combustion engines. The move will result in a new ‘global supplier’ of next-gen hybrid and ICE engines, and will leave a direct future-proofed path for further EV development. 

I thought EVs were the future?

They still are – and you can read about the best ones, and most exciting ones here – but there’s still significant demand for ICE power. And because that demand is going reduce eventually, it’s far more efficient to pool resources, and divert the savings to the next new battery-powered battleground.

Keeping it in the family

The new arrangement will certainly benefit Volvo, which expects all of its sales to be electrified by 2025, with half full BEV and half hybrid. The move will also benefit the rest of the Geely empire too, with the likes of Proton, Lynk & Co and Lotus all gaining access to a new supplier – the latter’s SUV-shaped ambitious feels like a perfect fit for the new engines. 

Geely says that the new engines could also be sold to third-parties – so it’s possible Geely could franchise out its ICE expertise in the same way BMW is set to do for the JLR group. 

The next step?

Right now, both Geely and Volvo will carve out and separate their ICE departments from the rest of the business – and after that they’ll look to combine them.

By Curtis Moldrich

CAR's online editor and racing-sim enthusiast