BEIJING: Geely Car and sister firm Volvo Automobiles will abandon merger plans however launch a brand new entity to mix their powertrain operations and broaden cooperation on electrical autos, the businesses stated on Wednesday.
A yr in the past the 2 stated they have been planning to merge and listing in Hong Kong and probably Stockholm, giving Volvo entry to public markets, as international automakers pursue alliances to reply higher to the price of the transition to electrical automobiles, more durable emission guidelines and autonomous driving.
In a joint assertion on Wednesday Geely Cars and Volvo Automobiles that they might perserve with their current separate company constructions after “an in depth assessment of mixture choices”.
They stated, nonetheless, they might launch a brand new firm to mix their current powertrain operations.
The brand new entity, anticipated to change into operational this yr, will present engines, transmissions techniques and petrol-electric hybrid techniques to be used by each firms in addition to different automakers.
Zhejiang Geely Holding Group, Geely Car’s guardian, purchased Volvo Automobiles from Ford Motor Co in 2010. Final yr Geely Car offered 1.32 million automobiles whereas Volvo Automobiles offered 661,713 autos.
