It’s been clear for years now that electrification is the future for the automotive industry. In fact, several manufacturers have now set their sights on achieving fully electric and carbon-neutral lineups in the next decade or so.
Mercedes-Benz parent company Daimler AG is one of the many carmakers that seek this carbon neutrality. And in order to reach its goals, it has now inked a partnership with Chinese automotive giant Geely Holding Group, the parent company of Volvo.
Through this collaboration, the two companies will share resources to produce hybrid powertrain solutions. Both groups will work together on a next-generation gasoline engine that will be built specifically for hybrid applications and produced at the companies’ facilities in Europe and China.
The powertrains that would result from this partnership will be used by Mercedes-Benz and its established partners in China, as well as the several brands under the Geely Holding Group.
“Our goal continues to be CO2-neutrality. By 2039, our ambition is a completely carbon-neutral new passenger car fleet. The consequent electrification of our powertrain portfolio therefore is an integral part of our drivetrain strategy,” said Mercedes-Benz Cars COO Markus Schafer. “To this end, we are systematically converting our portfolio, so that by 2030 more than half of our passenger car sales will be comprised of plug-in hybrids or purely electric vehicles.”
“Clean and highly efficient powertrains are integral to our core competitiveness. With our full commitment to electrification supported by our new ‘Sustainable Experience Architecture (SEA)’ as the core pillar, we will continue to seek competitive advantages in R&D, Production, Supplier Management and other fields and focus on the development of premium electrified vehicles,” said Geely Holding Group president An Conghui.
“We are looking forward to the future; when, together with Volvo´s ICE unit and Geely, we will further extend our synergies in the field of highly efficient drivetrain systems in China and the world,” Schafer furthered.
“Together with our partner, we will jointly develop next generation of advanced technologies in order to remain at the top in the industry in times of wide-ranging change,” added Conghui.