2019 Volvo XC40 First Drive
Mercedes-Benz parent company Daimler supplying engines to Volvo could be just one area of cooperation following the February deal that saw Li Shufu, the owner of Volvo parent company Zhejiang Geely Holding Group, buy a 9.7 percent in Daimler in a deal worth $9 billion.
The information was reported on Thursday by German publication Manager Magazin, which cited sources at Daimler. The sources said that Daimler would also be willing to purchase a small, non-controlling stake in Volvo to prove its willingness for long-term cooperation.
Daimler made a similar deal with the owners of Aston Martin in 2013, with Daimler acquiring 5.0 percent of Aston Martin in return for the supply of engines and various electronic systems.
A spokesperson for Daimler refused to comment on the possibility.
Li Shufu sees further cooperation in the industry as vital to fending off newcomers such as Alphabet and Uber, which he has referred to as “invaders.” He specifically mentioned cooperation in the areas of electric and self-driving cars when he acquired a stake in Daimler, though no doubt both parties will be open to other areas of cooperation.
Manager Magazin's sources have also suggested that Zhejiang Geely has a new electric car platform that could be shared with other automakers, including Daimler.