Daimler AG and Geely plan to work together to develop a new technology platform for hybrid cars of Mercedes-Benz and Volvo.
Daimler AG and Geely, the parent group of Mercedes-Benz and Volvo, have announced plans to jointly develop a new engine platform for future hybrid models.
The two automakers said they will work together to bring new solutions to hybrid engines, while supporting each other’s development and competitiveness.
German and Chinese corporations will join hands to share technical measures, sourcing materials and other items to move towards a broader common goal of producing zero-emission cars.
In the immediate future, the research and development (R&D) departments of the two companies will focus on building new engine models to optimize performance for hybrid and plug-in hybrids (plug-in hybrid, PHEV). Next, the new powertrain platform will be produced at factories in Europe and China for the hybrid vehicle of Mercedes-Benz and Volvo.
On the Daimler side, a newly formed division was Mercedes-Benz Drive Systems to join the project in partnership with Geely. On the Chinese side’s side, Volvo and Geely’s ICE unit will take on the equivalent role.
Daimler plans to have half of passenger cars sold by 2030 be either PHEVs or electric vehicles. Photo: AutoexpressUk.
This can be seen as an important move in Daimler’s plan to phase out cars using internal combustion engines in 2039. Currently, the three-pointed star brand has sold its first electric car model, Mercedes-Benz EQC.
Meanwhile, the Swedish automaker also has its own electric SUV, the Volvo XC40 Recharge. In addition, Geely owns another electric car company, Polestar, a competitor of Tesla.
The relationship between Daimler AG and Geely has become closer since the beginning of 2018. At that time, billionaire Li Shufu, the chairman of Geely, spent nearly $ 9 billion to acquire nearly 10% of the shares of Daimler AG and became the largest shareholder of the German auto group.
In 2010, the Chinese group acquired the ownership of Volvo from Ford for $ 1.8 billion. Geely then invested an additional $ 10 billion to help the Swedish automaker grow over the past 10 years.