Daimler AG and Geely Holding said Friday that China could become a hub for the production and export of hybrid powertrains jointly developed for Volvo and Mercedes-Benz vehicles.
Earlier this week, the German automaker said it would partner with China's Geely to develop next-generation combustion engines for use in hybrid vehicles.
The engines will be manufactured in China as well as in Europe, and Geely and Daimler will collaborate on design, procurement and manufacturing, the companies said in a joint press release.
Mercedes-Benz has set itself the goal of converting more than half of its sales to hybrid and all-electric vehicles by 2030.
Ahn Konhui, President of Geely Holding Group, President and CEO of Geely Auto Group, said: “This project reflects the need for economies of scale and targeted investment in research and development in clean and high-efficiency transmissions, hybrid drive systems and their applications. ”