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DESPITE is committed to producing only pure electric vehicles by 2030, Volvo and implied, Zhejiang Geely Holdings Group owner, is giving advice to carmakers still planning to produce combustion engines for the time being and possibly for the next decade.

The irony is that a company aiming to capitalize on sustainability to sell BEVs is telling ICE manufacturers what to do is amazing. However, there seems to be some sense to the offer from Volvo/Geely (VG).

VG, through its powertrain unit, Aurobay, says internal combustion engine makers should consolidate their legacy businesses as electric cars take off with internal combustion engines in demand. demand for many years to come.

As reported in Automotive News Europe, (ANE): “Combining non-electric assets will help improve hybrid combustion technology and scale up for cost savings,” said Aurobay CEO. Powertrain Engineering Sweden, said Michael Fleiss.

ANE says VG recently completed its Aurobay joint venture, which includes two powertrain plants in Sweden and China, with plans to acquire external customers.

“The worst thing that could happen to the climate and the world, is that there is no further development of these technologies,” said Mr. Fleiss in an interview with ANE, who said that combining the Various properties “make perfect sense economically – it’s quite an expensive product.”

Automakers are increasingly taking steps to strike a balance between an electric-only future and legacy combustion assets. The crystal ball is being viewed as the most intense because many multi-billion dollar investments are directly related to the viability of giant companies and the livelihoods of millions of workers.

As mentioned, Volvo Cars last year said it would stop producing internal combustion models by 2030 and has already begun that process with the first diesel on the trim block and soon petrol models for the tank. garbage.

Meanwhile, Ford Motor Company has embarked on a segregation of its ICE and EV/software operations in the process, causing thousands of vehicles to be scrapped because EVs are not as labor-intensive as ICE vehicles. Other manufacturers are running their own agenda in the transition.

ANE report says the Renault Group will detail the consumption of electric vehicle assets in November, while the Mercedes-Benz Group has said it will only sell electric cars by the end of the decade. whatever that means.

Aurobay is aiming to be “as big as possible, as fast as possible,” Mr Fleiss told ANE, which will require collaboration.

“Even if all these predictions and ambitions to sell BEVs come true, by 2040, 75% of cars on the road will still be combustion engines,” he admits.

The unit, which is two-thirds owned by Geely and the rest is owned by Volvo Cars, has produced 750,000 combustion and hybrid engines as well as electric motors, at the Skovde plant in southern Sweden and the Zhangjiakou plant in Ha province. North, China.

ANE says the business employs about 2900 people and that both facilities, once owned by Volvo, have been wholly owned by Geely since 2010. There are also plans to add Geely Automobile’s powertrain operations. Holdings into the venture at some point in the future.

Mr Fleiss, a longtime Volvo Cars executive with previous roles at the Volkswagen Group, declined to comment to ANE on whether Aurobay was in talks with Renault over its combustion engine business plan. them or not. Consolidation of such assets, however, is “certainly ahead,” he said.

Aurobay may consider a stock market listing “for a number of years” but “has no operational plans,” said Fleiss, adding that a surprising number of investors are interested. are looking for options to buy into the company.

“These investors see that there is still a great deal of business left, and some revenue will be made before this technology dies,” he told ANE.

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