Daimler And Volvo Talking R&D Collab For Internal Combustion Engines

Word has it that Daimler and Volvo are considering joining forces to cut costs on the development of internal combustion engines.

According to Autonews Europe affiliate Automobilwoche, a Volvo exec was cited as saying that initial talks with Daimler have already taken place, but without any concrete plans. Meanwhile, a company spokesman stated that it was too early to talk about future projects.

Geely, who owns Volvo, also holds a 10 percent stake in the German automaker – which is something that may or may not make a difference should talks between the two European carmakers advance.

Also read: Daimler and Volvo Executives Question Geely’s Alliance Plan

Back in October, Volvo said that it would merge its combustion engine development and manufacturing assets with Geely’s into a standalone operation, allowing them to establish “a new global supplier that will seek to develop next generation combustion engines and hybrid powertrains.”

This new division could reportedly start operations by the end of March, in turn acting as a possible starting point for a cooperation with Daimler, although a further step could be a partnership to develop electric powertrains.

Geely and Daimler already plan on building next-generation Smart electric cars in China using a joint venture, and are also working together on a premium ride-hailing service, also in China. As for Volvo and Geely, they already share technology through the latter’s Lynk brand.

Regarding a possible team-up with Volvo, a Daimler spokesman said that the German brand’s cooperation with Geely was developing in a positive way, yet declined to comment any further.