Geely and Volvo Cars to merge engine operations
By Li Fusheng | China Daily | Updated: 2019-10-10 07:40
Geely Auto and Volvo Cars are planning to merge their engine operations into a stand-alone business unit, which will pool resources to create greater synergy between them and facilitate their electrification campaigns, according to parent company Zhejiang Geely Holding Group.
The proposed new unit, which is still subject to diligence and approval, will develop and produce more efficient engines and hybrid powertrains for vehicles under all brands across the group as well as other automakers, the company said in a statement on Monday.
It said the move will increase synergies for both Geely and Volvo in research and development, manufacturing, procurement, and operations and thus improve efficiency and cut costs for them.
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