About this time last year, talks about Geely and Volvo’s merger surfaced in cyberspace. It would result in the creation of a new entity consisting of the two industry giants, similar to how Stellantis was formed. Unfortunately, it appears that the said merger plans have been scrapped.
According to a report by Reuters, the two companies issued a recent statement that they would “preserve their existing separate corporate structures” after a “detailed review of combination options.”
However, Geely and Volvo also confirmed that they will still push through with a joint powertrain venture. In fact, the two will launch a new company that is expected to become operational this year. The new company will provide both engines (petrol, hybrid, and electric) and transmission systems not just for Geely and Volvo but for other carmakers as well.
“I firmly believe that this is the best combination, the best way forward for our companies,” said Volvo Cars CEO Hakan Samuelsson.
Geely’s parent company Zhejiang Geely Holding Group bought out Volvo Cars way back in 2010, so of course, this isn’t the first time the two companies will be collaborating. Their joint research team has already produced the Compact Modular Architecture (CMA) platform in the past.
What would you like to see from Geely and Volvo in the foreseeable future? Chime in through the comments section.