merge – All about car

The 2019 Volvo XC60Volvo Volvo Cars and Chinas Geely plan to merge their engine operations into a standalone company, a step the Swedish automaker says will cut costs as it shifts to a fully electrified lineup.The combined unit would supply two million diesel and gasoline-powered engines, compared with the 600,000 Volvo produces today, giving the two companies more scale to reduce material costs.It could also supply other car manufacturers, though none have expressed interest yet, Volvo CEO Hakan Samuelsson said, save for Geely-owned Lotus sports cars.Global automakers are walking a financial tightrope as they spend billions to develop electric vehicles that IHS Markit forecasts will grow from 2 per cent to 12 per cent of new-car production by 2030. At the same time, slowing sales, trade wars and tightening emissions regulations in China and Europe are pinching profits. Forming a standalone supplier will free up Volvo to focus on electric powertrains and platforms in-house without starving its internal combustion engine business of resources, Samuelsson said.Its not like the combustion engine is going to be a growing business, he said in a phone interview. The right thing to do is to consolidate and seek synergies. And the earlier you do that, the stronger you will be.Volvo said no jobs will be eliminated in forming the new supplier, which will employ about 3,000 Volvo workers and 5,000 from Geely, including people in engineering, procurement, manufacturing, information technology and
Origin: Volvo and Geely to merge engine production efforts into new company

Volvo and parent firm Geely are planning to merge their combustion-engine operations into a new stand-alone company, which will focus on developing more efficient next-generation units and hybrid powertrains. The new powertrain business would continue to supply regular and hybrid combustion engines to Geely’s stable of brands including Volvo, Lotus, Proton, LEVC and LynkCo. It would also aim to serve as a supplier to other third-party firms. The company would be comprised of around 3000 current Volvo employees and 5000 from Geely, with no job losses anticipated. Both firms have started to split their engine operations into new divisions ahead of the planner merger. Volvo says the move will allow it to focus on the development of fully electric powertrains and cars. The company is committed to offering an electrified version of every new model, and expects battery-electric vehicles to account for half of its global sales by 2025. Volvo will launch its first fully electric production car, an XC40 EV, next week. While Volvo is focused on an electric future, combustion engines will remain a key part of its offering, and Volvo boss Håkan Samuelsson said creating the new stand-alone engine company would have an enhanced ability to develop combustion-engine technology, particularly for hybrid cars. “Hybrid cars need the best internal combustion engines,” said Samuelsson. “This new unit will have the resources, scale and expertise to develop these powertrains cost-efficiently.”The new plans are subject to approval from the Volvo and Geely boards, relevant authorities and union
Origin: Volvo and Geely to merge combustion-engine programmes