Daimler AG and Geely Holding, the respective parent companies of Mercedes-Benz AG and Volvo Cars, plan to collaborate on developing highly efficient powertrain systems for next-generation hybrid vehicle applications.
The companies expect to work together on hybrid powertrain solutions to enhance their global competitiveness and create economies of scale. Areas of potential cooperation include engineering, sourcing, industrialization and efficiency measures.
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.
Our goal continues to be CO2-neutrality. By 2039, our ambition is a completely carbon-neutral new passenger car fleet. The consequent electrification of our powertrain portfolio therefore is an integral part of our drivetrain strategy. To this end, we are systematically converting our portfolio, so that by 2030 more than half of our passenger car sales will be comprised of plug-in hybrids or purely electric vehicles.
We are looking forward to the future; when, together with Volvo’s ICE unit and Geely, we will further extend our synergies in the field of highly efficient drivetrain systems in China and the world. At Mercedes-Benz, the newly established unit Mercedes-Benz Drive Systems will spearhead the project and create cost efficiencies.—Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG; responsible for Daimler Group Research and Mercedes-Benz Cars COO
With our full commitment to electrification supported by our new ‘Sustainable Experience Architecture (SEA)’ as the core pillar, we will continue to seek competitive advantages in R&D, Production, Supplier Management and other fields and focus on the development of premium electrified vehicles. This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications. Together with our partner, we will jointly develop next generation of advanced technologies in order to remain at the top in the industry in times of wide-ranging change.—An Conghui, President of Geely Holding Group, President and CEO of Geely Auto Group
Daimler AG and Geely Holding are already working together to further develop the smart brand on a global basis and to provide premium ride-hailing services in the Chinese market.