AGL 40.22 Increased By ▲ 0.22 (0.55%)
AIRLINK 130.99 Increased By ▲ 1.46 (1.13%)
BOP 6.80 Increased By ▲ 0.12 (1.8%)
CNERGY 4.62 Decreased By ▼ -0.01 (-0.22%)
DCL 9.01 Increased By ▲ 0.07 (0.78%)
DFML 43.60 Increased By ▲ 1.91 (4.58%)
DGKC 84.05 Increased By ▲ 0.28 (0.33%)
FCCL 33.13 Increased By ▲ 0.36 (1.1%)
FFBL 78.61 Increased By ▲ 3.14 (4.16%)
FFL 11.72 Increased By ▲ 0.25 (2.18%)
HUBC 110.70 Increased By ▲ 0.15 (0.14%)
HUMNL 14.73 Increased By ▲ 0.17 (1.17%)
KEL 5.43 Increased By ▲ 0.04 (0.74%)
KOSM 8.35 Decreased By ▼ -0.05 (-0.6%)
MLCF 39.85 Increased By ▲ 0.06 (0.15%)
NBP 61.00 Increased By ▲ 0.71 (1.18%)
OGDC 200.00 Increased By ▲ 0.34 (0.17%)
PAEL 26.75 Increased By ▲ 0.10 (0.38%)
PIBTL 7.83 Increased By ▲ 0.17 (2.22%)
PPL 160.50 Increased By ▲ 2.58 (1.63%)
PRL 26.81 Increased By ▲ 0.08 (0.3%)
PTC 18.54 Increased By ▲ 0.08 (0.43%)
SEARL 82.40 Decreased By ▼ -0.04 (-0.05%)
TELE 8.28 Decreased By ▼ -0.03 (-0.36%)
TOMCL 34.45 Decreased By ▼ -0.06 (-0.17%)
TPLP 9.06 No Change ▼ 0.00 (0%)
TREET 17.05 Decreased By ▼ -0.42 (-2.4%)
TRG 61.00 Decreased By ▼ -0.32 (-0.52%)
UNITY 27.55 Increased By ▲ 0.12 (0.44%)
WTL 1.43 Increased By ▲ 0.05 (3.62%)
BR100 10,556 Increased By 149.1 (1.43%)
BR30 32,059 Increased By 345.6 (1.09%)
KSE100 98,384 Increased By 1055.6 (1.08%)
KSE30 30,611 Increased By 418.6 (1.39%)
Business & Finance

Geely Auto and Volvo Cars to launch powertrain venture after merger scrapped

  • Geely Automobiles and Volvo Cars that they would perserve with their existing separate corporate structures after "a detailed review of combination options".
  • The new entity, expected to become operational this year, will provide engines, transmissions systems and petrol-electric hybrid systems for use by both companies as well as other automakers.
Published February 24, 2021

BEIJING: China's Geely Automobile and its Swedish sister company Volvo Cars will abandon merger plans but launch a new entity to combine their powertrain operations and expand cooperation on electric vehicles, the companies said.

A year ago the two said they were planning to merge and list in Hong Kong and possibly Stockholm, giving Volvo access to public markets, as global automakers pursue alliances to respond better to the cost of the transition to electric cars, tougher emission rules and autonomous driving.

In a joint statement on Wednesday Geely Automobiles and Volvo Cars that they would perserve with their existing separate corporate structures after "a detailed review of combination options".

They said, however, that they would launch a new company to combine their existing powertrain operations.

The new entity, expected to become operational this year, will provide engines, transmissions systems and petrol-electric hybrid systems for use by both companies as well as other automakers.

The two companies will also focus on the development and sourcing of next-generation technologies, from connectivity and self-driving vehicles to car sharing and electrification. They plan to share and jointly source batteries, electric motors and connectivity solutions, the statement added.

Geely Auto will also forge a partnership with Volvo's sales network to help to boost growth for their jointly owned Lynk & Co car brand.

Hangzhou-based Zhejiang Geely Holding Group, Geely Automobile's parent, bought Volvo Cars from Ford Motor Co in 2010. Last year Geely Automobile sold 1.32 million cars while Volvo Cars sold 661,713 vehicles.

Comments

Comments are closed.