Volvo and Geely are merging their legacy engine operations to focus on EVs - Business Insider

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Volvo and Geely's merged internal combustion engine business will work on designing new and upgraded ICEs to supply in-house brands:

BMW and Toyota agreed to an ICE-sharing deal. This deal enabled Toyota to developing a new ICE for its Supra sports car, and BMW to split the cost to develop the engine, which it used in its Z4 sports car. Consolidating ICE efforts provides greater efficiency and cost savings for a tech that automakers likely don't see much of a future in. Sales of ICE vehicles are expected to decline after 2030, Subaru and Toyota teamed up to jointly develop an electric vehicle platform.

Under their agreement, Subaru and Toyota are jointly an EV platform to build SUVs that will be sold under both brands. Joint development allows the companies involved to split manpower and costs while combining their best assets. EV development can be expensive, with automakers already planning to commit around Geely and Volvo have decided to combine combustion engine development, but not EV drivetrain efforts, likely in an effort to build a wider array of EV platforms.

 

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