Volvo, Geely engine venture fires up

Swedish carmaker Volvo and its Chinese parent company Geely will start making their own engines in unison.

The new business will develop “next generation” internal combustion and hybrid powertrains for both brands as well as for Lotus, Proton, the London Electric Vehicle Co., and Lynk & Co.

The companies promise no redundancies or lay-offs will occur as a result of the merged operations, and in fact will see 3000 Volvo Cars positions retained or added, while 5000 Geely staff in combustion engine operations including research and development, procurement, manufacturing, IT and finance functions will be kept or added.

Volvo Cars’ president and chief executive Håkan Samuelsson says the electrification of the automotive industry will be a gradual process, meaning significant ongoing demand will remain for efficient hybrid powertrains.

“Hybrid cars need the best internal combustion engines; this new unit will have the resources, scale and expertise to develop these powertrains cost efficiently,” he says in a statement.

Despite a widespread deficit in global car sales, Volvo recorded global volumes were up 7.4% for the first nine months of 2019 compared with 2018, to a total of 507,704 reported unit sales.

The company says Europe, China and the US all reported a steady sales growth, gaining market share across those regions, and in September alone the brand sold 64,536 cars for a 6.5% gain over September 2018.

Volvo Cars Australia continued the trend with a 3.7% September 2019 improvement over the same month last year, adding to a 17.5% lead over annual sales compared with this time in 2018.