At the same time, European companies are willing to sell their latest developments
The Chinese company Geely found an easy way to make a breakthrough in internal combustion engine technology and capture this market. She decided to buy them from European automakers who no longer intend to invest in fossil fuel units. Europeans are throwing all their resources into the development of electric vehicles and units for them.
In particular, Geely is buying out the division of Volvo Cars Powertrain Engineering Sweden, or rather, it is being transferred to Volvo – Geely Holding during the buyout of 33% of the shares from the Swedes. We are talking about a design office, which employs high-class engineers, as well as engine factories in the Swedish city of Skövde and in China, as well as other assets.
Volvo welcomes the desire of Geely to buy out their stake, as internal combustion engines are becoming a non-core asset for the Swedes – from 2030, Volvo plans to produce only electric vehicles.
Geely has also set its sights on Renault technologies, and this company has been a supplier of engines for Formula 1 racing cars for many years and has many interesting developments. And no one in Europe will need these developments from 2035. There, at this time, the era of electric vehicles should come.
Therefore, Geely intends to buy ICE technology from Renault as well. In addition, the Chinese and French automakers will set up a joint venture to produce engines as well as hybrid powertrains, with each holding a 50% stake.
It is planned to manufacture products at 17 factories located on three continents, and the number of employees will be 19 thousand people. The volume of production – more than 5 million engines per year – is approximately 80% of the global demand for internal combustion engines.
These engines and hybrid units will be purchased by Renault and Geely themselves, as well as Dacia, Nissan, Mitsubishi, the already mentioned 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.