Volvo, Geely To Merge Engine Development
Oct. 8, 2019—Volvo will merge its engine development and manufacturing assets with Geely, reported Reuters. The merge marks the latest example of consolidation in the engine manufacturing sector as tighter emissions rules raise development costs.
Volvo currently builds 600,000 combustion engines, a number that will rise to about 2 million when combine with Geely's assets.
In the medium term, Volvo will drop diesel engines altogether in favor of focusing on hybrid and electric powertrains.