(Hangzhou/Göteborg, October 7, 2019) Geely Automobile and Volvo Car, part of Zhejiang Geely Holding Group, are exploring the possibility of merging their engine business, aiming to build a world-leading powertrain business unit, developing and producing leading power. Assembly and hybrid system.
The project is currently in the planning stage and must be implemented after the parties have reached a merger intention and completed due diligence. This program is designed to help Volvo Cars accelerate the overall electrification process. Volvo Cars is committed to selling half of all electric vehicles and hybrid cars in all models by around 2025. Volvo Cars will still source high-efficiency powertrains and hybrid systems from new business units.
For Geely Holdings, the new business unit will focus on the resources, research and development and production of leading clean and efficient powertrain and hybrid systems, and carry it in its Volvo, Geely, Lectra, Proton, Brands such as Lotus and London Electric Vehicles further strengthen the synergies between brands.
At present, Volvo Cars and Geely Automobile have 3,000 employees and 5,000 employees engaged in engine R&D, procurement, and manufacturing. The planned merger will not affect the existing workforce.
Since the acquisition of Volvo Cars by Geely Holding in 2010, Geely Automobile and Volvo Car have achieved record highs, and resource integration and synergy have been continuously enhanced. The integration plan for the engine business will further enhance the scale effect of the two parties in research and development, production, procurement and operation.