Volvo Cars and Zhejiang Geely Holding Group plan to carve out their engine operations and merge them into a stand-alone unit.
The new business will develop next-generation hybrid powertrains and internal combustion engines for group brands such as Volvo, Lotus, Lynk & CO and Geely Auto as well as third parties.
Volvo CEO Hakan Samuelsson said the move helps further accelerate the Swedish automaker’s push to have battery-driven cars account for half of its global sales by 2025.
“Volvo has taken another decisive step toward electrification by adjusting its business structure,” Samuelsson told Automotive News Europe.
More at Autonews Europe