Volvo Cars and its parent company Zhejiang Geely Holding Group Co. Ltd. will merge their combustion engine operations into a stand-alone business, the Swedish carmaker said Oct. 7.
With the merger, Volvo Cars intends to focus on developing its all-electric range of premium cars.
Geely will make engines with the new entity for its brands including Geely Automobile Holdings Ltd., Malaysia-based Proton, sports-car maker Lotus, LEVC and Lynk & Co.
The merged business will employ approximately 3,000 employees from Volvo Cars and about 5,000 employees from Geely.
Volvo Cars expects electric cars to account for about half of its global sales by the middle of the next decade, with hybrid models to comprise the other half.
The new unit will also supply engines for the company's hybrid models.
