Volvo and Geely to spin off engine ops to focus on EVs

New combined unit will supply gasoline engines and hybrid systems worldwide

20191007N Geely plant REUTERS

Geely will merge its gasoline engine operations, such as this plant in Hangzhou, China, with Volvo's by the middle of the next decade. © Reuters

KOSEI FUKAO, Nikkei staff writer

FRANKFURT, Germany -- Volvo Cars and Chinese parent Geely said Monday they will combine their internal combustion engine segments into a standalone company in an effort to free up resources for developing electric vehicles.

The two automakers will start by forming their own independent units next year that will house their gasoline engine and hybrid system operations. The timeline of the merger is still being discussed, but it appears the process will be completed around 2025 at the latest.

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