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

© Reuters. FILE PHOTO: A building of the Geely Auto Research Institute is seen in Ningbo


BEIJING (Reuters) – Geely Automobile and 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 on Wednesday.

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, 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.

Zhejiang Geely Holding Group, Geely Automobile’s parent, bought Volvo Cars from Ford Motor (NYSE:) Co in 2010. Last year Geely Automobile sold 1.32 million cars while Volvo Cars sold 661,713 vehicles.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.