Rival Volkswagen (VOWG_p.DE), which is in the midst of ramping up mass production of electric cars, has already warned its in-house suppliers to create structures to consolidate combustion engine assets.
Volvo currently builds 600,000 combustion engines, a number that rises to about 2 million when combined with Geely’s assets, allowing for savings on components and development costs, Volvo Chief Executive Hakan Samuelsson told Reuters.
That will allow the Gothenburg, Sweden-based brand to more sharply focus its resources on building and developing a range of entirely electrified premium cars.
