Mercedes-Benz parent Daimler AG says the company is open to the idea of supplying Volvo engines. The procurement would come as part of increased cooperation between the German automaker and Volvo owner Geely.
This isn’t the first chatter of alliances between the two automakers. Geely Chairman Li Shufu recently bought a $9 billion stake in Daimler AG. Shufu says the stake is an effort to forge a new alliance with Daimler to fend off new competitors, such as Tesla and Uber.
Germany’s Manager Magazin is now reporting the two companies are discussing the idea of Daimler supplying engines for Geely’s Volvo brand. The report also suggests Daimler is open to the idea of its buying a small stake in Volvo Cars.
Daimler has declined to comment on what it calls “pure speculation.” Volvo too has declined to comment on the report.