Volvo and Geely have been working in conjunction for quite some time now but as they both head towards electrification of their powerplants, the two brands have decided to merge their combustion engine operations. 

This stand-alone business will allow Volvo to focus on its EV developments, the first of which will be the electrified XC40. The Swedish brand aims to create an entirely electrified product range and expects half of its global sales to be fully electric cars by 2035, the other half will be hybrid-electric vehicles.

As for Geely, this decision will allow it to focus on more efficient combustion engines and hybrid powertrains which it will be utilised by such sub-brands such as Proton, Lynk & Co and Lotus.

“Hybrid cars need the best internal combustion engines. This new business unit will have the resources, scale and expertise to develop these powertrains cost efficiently,” said Håkan Samuelsson, Volvo Cars’ president and chief executive.

Original article from Car