Volvo and Geely to merge engine operations

The combined unit would supply two million diesel and gasoline-powered engines, versus the 600,000 Volvo produces today, giving the two companies more scale to reduce material costs

NEW YORK: Volvo Cars and China’s Geely plan to merge their engine operations into a standalone company, a step the Swedish automaker says will cut costs as it shifts to a fully-electrified lineup.

The combined unit would supply two million diesel and gasoline-powered engines, versus the 600,000 Volvo produces today, giving the two companies more scale to reduce material costs.