The Chinese company Geely found an easy way to make a breakthrough in internal combustion engine technology and conquer this market. She decided to buy them from European car manufacturers that no longer intend to invest in fossil fuels. Europeans are putting all their resources into developing electric vehicles and units for them.
In particular, Geely buys the division of Volvo Cars Powertrain Engineering Sweden, or rather it is transferred to Volvo – Geely Holding during the buyout of 33% of the shares of the Swedes. We are talking about a design bureau, which employs first-class engineers, as well as engine factories in the Swedish city of Skövde and in China, as well as other assets.
Volvo welcomes Geely’s desire to buy out their share as combustion engines become a non-core asset for the Swedes – from 2030 the company Volvo plans to produce only electric vehicles.
Geely also set his sights on technology Renault, and this company has been a supplier of engines for Formula 1 racing cars for many years and has seen many interesting developments. And from 2035, no one in Europe will need these developments. At this point, the era of electric vehicles should come.
That’s why Geely plans to buy ICE technologies from Renault as well. In addition, the Chinese and French automakers will form a joint venture to produce both engines and hybrid powertrains, each holding a 50% stake.
It is planned to produce products in 17 factories on three continents, and the number of employees will be 19 thousand people. The production volume – more than 5 million engines per year – is about 80% of the global demand for combustion engines.
These engines and hybrid units will be bought by Renault and Geely themselves, as well as Dacia, Nissan, Mitsubishi, the aforementioned Volvo, Lynk & Co and Proton – all of which are part of the Geely and Renault groups. Other automakers will also be able to buy from the new company.
Source: Z R
