Daimler and Volvo plan to join forces in the development of internal combustion engines. Reuters news agency reported citing the German newspaper Automobilwoche.
Volvo confirmed the fact of negotiations with the German concern, stressing that a final decision has not yet been made. If Daimler and Volvo agree on cooperation, this will mean further expansion of the German brand’s cooperation with the Chinese group Geely, which owns Volvo and a 10% stake in Daimler.
In October last year, Volvo announced that it would combine its assets in the development and production of engines with Geely, creating a division to supply its own brands and, possibly, third-party, next-generation internal combustion engines, as well as hybrid power plants. According to Automobilwoche, the new unit will begin operating by the end of March this year, which could be the starting point for cooperation with Daimler, and in the future for the joint development of electric cars. Geely and Daimler previously announced that they plan to build a new generation of smart electric vehicles in China.
Geely acquired Volvo Cars in 2010 from Ford Motor Co, but until recently had little influence on the development of the Swedish brand. In recent years, cooperation between the two brands has deepened. Volvo already supplies engines for Lynk & Co. The companies also jointly develop and use automotive platforms.