Volvo Will Use Engines Also Developed by Mercedes and Geely

Efficiency through electrification is key.

Geely and Daimler, parent companies of Mercedes Benz and Volvo announce a partnership for the development of highly efficient powertrain systems to support next-generation hybrid vehicle applications.

According to the press release, they will collaborate on hybrid powertrain solutions in order to increase their global competitiveness as well as create true economies-of-scale. The two companies will possibly collaborate on hybrid powertrain solutions to enhance their global competitiveness and create true economies of scale.

The team-up of Geely and Daimler aims to accelerate a common goal: emission-free driving.

The R&D networks from both companies will be used to develop the next-generation gasoline engine for hybrid applications. This powertrain could be used in future Mercedes- and Volvo cars by being produced at powertrain plants in Europe and China.

This is in line with Daimler’s goal to achieve CO2-neutrality by 2039 and to convert Mercedes’ portfolio by 2030. The German marque plans to convert half its passenger cars to plug-in hybrids and purely electric by the end of the stated timeframe.

Volvo Will Use Engines Also Developed by Mercedes and Geely

“We look forward to the future. When, together with Volvo’s ICE unit, and Geely we will further expand our synergies within the field of highly efficient drivingtrain systems in China. The newly created unit Mercedes-Benz Drive Systems at Mercedes-Benz will lead the project and make cost efficiencies,” Markus Schafer (Member of the Board of Management of Daimler AG & Mercedes-Benz AG) added.

It is no secret that Geely & Daimler have been working together for the next generation of Smart cars. Geely Chairman Li Shufu was reportedly interested in developing deeper ties to the German company. Earlier reports had suggested that the two companies were co-developing new engines . These reports are now confirmed by this official announcement.