According to Volvo CEO Hakan Samuelsson, talks regarding a merger or alliance between Volvo and Geely will likely resume in the first quarter of next year.
The reason why these merger talks have been delayed in the first place was Geely’s goal to obtain a listing on Shanghai’s New Star Market, which in turn prohibited them from making any capital structure changes, explained the Volvo boss.
Their history together began when the Zhejiang Geely Holding Group purchased Volvo from Ford back in 2010.
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“Quarter one is more realistic next year. We have said we are looking at a combination and it could be done in different ways. Platform sharing and so on,” said Samuelsson. Also, any type of merger deal would have to have in place a strategy that preserves the identities of both companies, reports Autonews Europe.
Volvo in particular wants to be able to continue on its path of investing in low-emissions vehicles, with Samuelsson stating earlier this week that his company will become an electric-only brand within the next 10 years.
“Volvo is of course very proud… and Geely is very proud of their brand and they of course also don’t want to be part of a more European constellation. It is an opportunity to form some sort of an alliance,” said Samuelsson, before adding that Geely could provide Volvo with access to a lot of efficient suppliers in China. “Let’s see what is the best way forward,” he concluded.
In other global news, Volvo has sold environmental credits to Ford Europe, with both carmakers facing tighter fleet emissions rules this year.
