Daimler AG and Geely Holding, the respective parent companies of Mercedes-Benz AG and Volvo Cars, have launched plans to collaborate on developing highly efficient powertrain systems for next-generation hybrid vehicle applications. The cooperation is expected to see the companies work together on hybrid powertrain solutions to enhance their global competitiveness and create true economies of scale. Areas of potential cooperation include engineering, sourcing, industrialization and efficiency measures.
Both groups see efficient drivetrain technologies as central to the ongoing transformation of the automotive industry, and will accelerate the transition to emission-free driving. Both groups will use global R&D networks to work together on a next-generation gasoline engine specified for hybrid applications to be produced at the companies’ powertrain facilities in Europe and China, which could be utilized by Mercedes-Benz AG together with its established partners in China as well as the wider Geely Holding Group portfolio of brands including Volvo Cars. To this end, the export of the engine from China is considered to be an option.
The new project with the wider Geely Holding Group is part of Mercedes-Benz’s comprehensive drivetrain strategy for the future. As part of “Ambition 2039”, Mercedes-Benz is consistently pushing towards “Electric first” with the electrification of all model variants and vehicle types, thus making a clear commitment on its way to CO2-neutrality. In order to meet the different market requirements and various customer needs worldwide, highly efficient combustion engines are part of this transition. Mercedes-Benz remains committed to driving forward the transformation of drive systems even more rapidly and more efficiently while maintaining its technology leadership in the global markets.