Daimler confirms engine partnership with Geely, to include Proton and Volvo Cars

Daimler AG and Geely Holding Group made a joint announcement late yesterday confirming earlier reports that both companies are collaborating to develop hybrid powertrain for next generation hybrid vehicles.

The resulting powertrains could be used by Mercedes-Benz and all Geely Holding Group’s portfolio of brands, including Volvo Cars. 

“The cooperation is expected to see the companies work together on hybrid powertrain solutions to enhance their global competitiveness and create true economies of scale. Areas of potential cooperation include engineering, sourcing, industrialization and efficiency measures,” said the joint statement.

“Both groups see efficient drivetrain technologies as central to the ongoing transformation of the automotive industry, and will accelerate the transition to emission-free driving. Both groups will use global R&D networks to work together on a next-generation gasoline engine specified for hybrid applications to be produced at the companies´ powertrain facilities in Europe and China, which could be utilized by Mercedes-Benz AG together with its established partners in China as well as the wider Geely Holding Group portfolio of brands including Volvo Cars. To this end, the export of the engine from China is considered to be an option.”

The fact that the announcement specifically mentions wider portfolio of Geely Holding Group's brands also implies that Lotus, Lynk & Co, as well as Proton, will have the option of utilizing these engines. 

The companies didn’t say which models will use the jointly developed engines, but earlier reports by Reuters suggest that the new partnership will reduce the importance of Daimler’s existing engine cooperation with the Renault Nissan Mitsubishi Motors Alliance, which currently supplies the M282 engine - in both regular turbocharged and plug-in hybrid form - for the compact Mercedes-Benz MFA II platform cars – the A-Class, B-Class, CLA-Class, GLA-Class, and GLB-Class.