“This is about maintaining top-line momentum,” Volvo Cars Chief Executive Officer Hakan Samuelsson said in an interview. “A merger isn’t always positive. You risk losing momentum because there’s too much internal focus.”Geely and Volvo also will move their powertrain activities into a separate company, which will enhance focus on development of electric vehicles, Samuelsson said. Daimler AG joining the business would be positive, he said.
The moves are the latest examples of auto companies rapidly transforming their businesses as they eschew the internal combustion engine in favor of batteries. Daimler this month said it’ll spin off its trucks unit after more than a century of keeping it under the same roof as its car operations, while Volkswagen AG is mulling a possible listing of Porsche.Volvo Cars may seek a listing of its own after deciding against a merger with Geely.
Li, the chairman and founder of Geely Holding, has been forging ties with a vast array of companies to stay abreast of the two great shifts hitting the industry: electrification and automation. In less than a month early this year, Geely agreed to pacts with search-engine heavyweight Baidu Inc., Apple Inc.’s Taiwanese manufacturing partner Foxconn Technology Group and Tencent Holdings Ltd.
Geely and Volvo will share vehicle platforms, software stacks and advanced connectivity. Volvo will also use its distribution and service network for a global rollout of the Lynk & Co brand that it jointly owns with Geely. The carmaker based in Gothenburg, Sweden, plans for fully electric vehicles to make up half of global sales by 2025.Bloomberg