Proton’s Chinese partners Geely is planning to merge its combustion engine operations with Volvo. In time, Geely and Volvo will work together as a global supplier on the next-generation combustion engines and hybrid powertrains.
For Geely. the planned new entity means technologically advanced and efficient combustion engines and hybrid powertrains would be available to Geely Auto, Proton, Lotus, LEVC and LYNK & CO. The planned new stand-alone business can also supply third-party manufacturers, providing possible growth opportunities. Meanwhile, Volvo will have the opportunity to focus on the development of its all-electric range of premium cars. Volvo is building an entirely electrified product range. By the middle of the next decade it expects half its global sales to be fully electric and the other half hybrid, supplied by the new unit.
New job opportunity in Geely-Volvo venture
With the new business venture, both Geely and Volvo are expected to offer jobs for a combined 8,000 headcounts (5,000 from Geely and 3,000 Volvo). The new division of engine combustion operations include research and development, procurement, manufacturing, IT and finance functions.
Both Geely and Volvo are in the process of carving out their ICE (internal combustion engine) operations into new units within their respective organizations, as a first step towards a merger of the two into a combined new stand-alone business.
As this is the first preliminary announcement, both Geely and Volvo are expected to provide more details about the new business. Moving forward, both manufacturers will give the business insights under development and subject to union negotiations as well as board and relevant authority approvals.