Mercedes Benz’s parent company Daimler AG plans to enter an industrial co-operation with Chinese holding company Geely, to collaborate to produce powertrain systems for next generation hybrid vehicles.
Geely owns Swedish manufacturer, Volvo Cars. The companies and their respective subsidiaries will work together on powertrain facilities in Europe and China to produce gasoline engines specific to hybrid vehicle applications which will then be used by both brands.
Daimler aims to make of its brands and model lines carbon neutral by 2039. This collaboration is a step towards achieving this goal. According to its vision, by 2030, more than half of Daimler’s passenger car sales will be either hybrid or electric vehicles, it said in a statement.