Apart from EVs, Mercedes-Benz is also expected to share engines with Volvo along with some other components
In the recent times, we have seen many manufacturers are joining hands together to develop new technologies which will help the consumer as we could see more innovations comes to our market quickly. Li Shufu, owner and chairman of Geely purchased a stake of 9.69 percent in Daimler and he becomes the biggest single shareholder in the company. Geely is the owner of Volvo, Polestar and the London Taxi company.
In the past few months, Geely was looking for a partnership with Daimler over developing new EV technologies as the company is under huge pressure from Chinese government to develop EVs as the country want to reduce pollution. Earlier Dimaler turned down an offer from Geely for buying upto 5 percent stake at a discounted price. The new deal will be an important milestone for Volvo in their quest for selling one million electric vehicles by 2025.
According to some reports, both companies could develop a joint EV platform along with production of battery cells. Volvo was developing a new EV platform for sometime and the first product from this platform was expected to be unveiled next year.
But some of the executives at Daimler are not happy with handing over technologies of Mercedes to Volvo. One the other hand, Daimler is also expected to buy a small share in Volvo but both companies hasn’t given any official information about this yet.
Volvo denied the report and Daimler spokesperson said it is a pure speculation and they won’t comment on it. Apart from EVs, Mercedes is also expected to share engines with Volvo along with some other components. So in future, we could see AMG performance engines to be used for Polestar performance brand models.
Volvo can also get lots of flexibility as they can offer lots more engine options for customers depending on markets. Mercedes butter smooth 9 speed dual clutch automatic transmission could also make their way into Volvo models. In the coming months, we will get more details about the deal.