The hybrid cars of the future need the future's internal combustion engines, says Volvo and Chinese owner Geely. Therefore, a joint independent company is set up to develop and deliver internal combustion engines for the future passenger car fleet.
- Hybrid cars need the best internal combustion engines. The new company will have sufficient resources, size and expertise to be able to develop these drivelines in a cost-effective way, says CEO Håkan Samuellson.
According to a press release, 3,000 jobs at Volvo and 5,000 at Geely will be relocated to the new company. It is not expected that the reorganization will cause any staff reductions. Today, the company has engine development in Gothenburg while production is in Skövde and China.
Volvo Cars' main track for the future is purely electric cars, which are expected to account for half of sales already in 2025. For other vehicles, the company has previously announced that it intends to completely stop using diesel engines and instead focus on gasoline engines that can be used with electric motors in hybrid vehicles.