With buyers becoming less and less concerned with what's actually under the hood, Volvo has decided to spinoff its engine department.

Volvo announced Monday that it will transfer its engine operations to a new standalone company that will also include the engine operations of Geely, Volvo's parent company. Volvo will supply about 3,000 staff and Geely around 5,000. The move isn't expected to cost any jobs at either automaker.

The new company will focus on developing next-generation engines, including engines in hybrid configurations, to sell back to Volvo and Geely, as well as Lotus, another Geely-owned brand which currently sources its engines from Toyota.

2020 Volvo XC90

2020 Volvo XC90

Volvo said the move would clear the way for it to focus on development of battery-electric powertrains. Volvo expects half its sales to be battery-electric cars by the middle of the next decade and the remaining half hybrids.

Naturally, other Geely-owned brands will also source their engines from the new company. In addition to Volvo, Geely and Lotus, Proton and Lynk & Co. were also confirmed as future recipients of engines from the new company. The door will also be open to supplying rival firms.

It isn't clear when we'll start seeing Lotus models with engines from the new company. The British sports car brand has just launched the Evija electric hypercar and is committed to launching a new sports car toward the end of 2020. The new sports car is currently thought to be coming with a Toyota engine, though.