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Mercedes May Supply Volvo Engines

Mercedes May Supply Volvo Engines

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.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. Andrew_L
    Tone
    Volvo has said that its current generation of ICE engines are its last. So, if it thinks it still needs ICE engines after the current generation is no longer viable, it would need to get them from a supplier -- which makes sense as it positions itself in such a way that the ICE engines don't really define Volvo-ness. That makes them ripe to be supplied by someone else.


    Didn't even think about that but that would make sense!
    Tone
    Volvo has said that its current generation of ICE engines are its last. So, if it thinks it still needs ICE engines after the current generation is no longer viable, it would need to get them from a supplier -- which makes sense as it positions itself in such a way that the ICE engines don't really define Volvo-ness. That makes them ripe to be supplied by someone else.
    2b2
    guess this is just PRE-rumor - needs to ferment a bit yet

    but

    wonder if it's Volvo buying MB engines? OR

    MB building Volvo designed engines for them?

    O.o
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