Daimler set to supply Volvo with engines and tech
German car giant says it is now open to supplying engines to Swedish car-makerDaimler will soon supply Volvo with engines and purchase a small share of the Swedish car-maker, say new reports.
According to German business publication
, the Mercedes-Benz brand is now considering a closer working relationship with Volvo after its parent company, Geely, boss bought an $11.5 billion share in Daimler.Overnight, this made Geely's chairman and majority owner, Li Shufu, Daimler's largest single shareholder, forcing it to consider a new alliance with the Chinese car-maker.
Set to purchase "a couple of per cent" in Volvo Cars, Daimler is now also expected to enter into an agreement to supply engines and, possibly, new technology to Volvo.
It's been reported the move by Geely's Li Shufu to rapidly build up his share of Daimler was to dissuade other companies like Google and Uber from nurturing a similar relationship with the German car-maker.
Volvo has yet to publicly comment on the Manager Magazin revelations while a Daimler spokesman dismissed the story as "pure speculation".
As well as engine technology it's rumoured Geely will use its newfound influence to also persuade Daimler to share its pure-electric and, even, its new autonomous driving technology.
The new partnership also bodes well for other car-makers owned by Geely, who set to benefit from access to the Benz's parts bin. These include both the newly-launched LYNK & Co and Lotus, which currently sources its engines from Toyota.
Li's purchase of a large 9.69 per cent stake in Daimler is still surrounded by plenty of controversy.
At the time, the Chinese billionaire's share-buying frenzy was described by Daimler itself as a 'personal investment' rather than being directly linked to the Chinese car-maker he just happened to own.
Geely has been on something of a buying spree of late. Not only has it snapped up Lotus, it's also still in negotiations to buy a larger chunk of Malaysian car-maker Proton.
Under Li's rule the car-making giant has also bought up London's iconic black cab manufacturer and even Terrafugia -- the American start-up that is developing flying cars.
The tie-up between both Geely and Mercedes-Benz could also provide a valuable link between Lotus and Aston Martin following Benz's recent purchase of a five per cent stake in the fellow famous British car-maker.
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