Is Geely Using Volvo Engines?

The purchase of Volvo Cars by Geely in 2010 is regarded as a significant development that fostered wide collaboration between the two automobile manufacturers. It is no secret that some Volvo engines may be used by Geely but what matters most is the fact that there has been bilateral innovation.

Inauguration of Joint Ventures

Volvo Cars and Geely have publicized the formation of a new entity that combines their powertrain divisions into a single operation in 2021, showing a step towards achieving synergy. This partnership is focused on developing next-generation hybrid systems as well as internal combustion engines (ICEs) expected to drive both companies’ future vehicles.

Impact On Geely’s Product Portfolio

Certainly, Geely’s offering of products changed completely after the alliance. For instance, within the Geely group, there is a brand called Lynk & Co., whose vehicles share many parts including powertrains with those found in Volvo cars that use Drive E engines sourced from their powertrain tech.

Sales and Market Extension in China

The holding firm saw impressive sales growth across its automotive businesses comprising Geely Auto, Lynk & Co as well as Zeekr where they sold 1.68 million units last year indicating a YoY increase of 18%. The purchase by Geely of Volvo’s engine-making department represents deep-level integration of various technology platforms among others. This move corresponds to Volvo’s strategy of exclusively marketing battery-operated electric vehicles.

Geely has widely depended on Volvo’s engine technology and product development for its establishment. Geely does not use engines directly produced by Volvo but there have been some joint ventures where powertrain systems were created leading to breakthrough solutions. Therefore, as the automotive sector gravitates towards electrification, Geely’s association with Volvo is expected to get stronger.