Geely from China is not going to merge his car branch with the Swedish Volvo Cars. Earlier proposals to this effect have been reversed because the Chinese think that they are doing more wisely to continue as independent manufacturers. However, Geely and subsidiary Volvo will work more closely together in the areas of electric driving, software and the technology behind self-driving cars.
“A merger is not always positive. You risk losing momentum,” said Volvo CEO Håkan Samuelsson. By this he means that Geely and Volvo would probably develop less quickly in the event of a merger, because they would have to spend a lot of time setting up a common organization.
For closer cooperation between car manufacturers, certain activities will be placed in a separate company. The company will then focus on new powertrains. Samuelsson hopes that the German Daimler will also join. The parent company of Mercedes-Benz already announced plans in November to jointly develop a petrol engine that can later be converted into an electric engine. Geely founder Li Shufu is also Daimler’s largest shareholder.
This may mean that Volvo Cars will apply for its own stock exchange listing in Stockholm. “It’s important to have the ability to reach the stock markets as a stand-alone company,” said Samuelsson. No decision has been taken yet.