Volvo, Geely to form stand-alone engine business

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, according to a release.

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.