Daimler and Volvo could share internal combustion engines

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The German press talks about a collaboration between Daimler and Volvo for the development of internal combustion engines. According to the publication Automobilwoche, which cites a Volvo representative, the two manufacturers have officially discussed the possibility.

Alliances and mergers between manufacturers are the order of the day in the automotive industry, companies wishing to spend less and more efficiently, in the context of the investments needed for new technologies.

Allegedly, the two parties have not yet come up with concrete plans, but they have not yet ruled out any possibility. Joint engine development would bring significant benefits to both companies, especially now that the transition to electric vehicles seems increasingly secure.

A spokesman for the Swedish builder spokesman said it was too early to comment on future projects. In addition, a German official said that the relationship between Daimler and Geely (the owner of Volvo) is developing in a positive sense, without giving further comment.

In addition, Volvo and Geely have already begun to consolidate and outsource their own engine development activities: the plan is for all of the company’s interests to acquire conventional engines and transmissions from a single joint venture. The decision will make a difference for Volvo, Geely, Lotus, Proton and London Taxi LEVC for the time being, but it could further improve efficiency if Mercedes is also involved.

There is only one major collaboration between Mercedes and Geely so far: the development and production of the Smart brand is virtually taken over by the Chinese company, but so far there has been no major negotiation between Volvo and Mercedes.

Two years ago, Geely was thinking of an alliance between Volvo and Daimler, but the Chinese plan was not to the liking of the two car makers. Geely owns almost 10% of Daimler. Li Shufu, the Chinese billionaire and chairman of Geely Group, bought 9.69% of Daimler in 2018 and became Daimler’s largest private shareholder.

Li ShuFu became the biggest Daimler shareholder with 9.69%