Daimler Will Develop Next-Generation Engines with Geely

German automaker Daimler announced on Tuesday afternoon it will cooperate with Chinese giant Geely in order to build a next-generation combustion engine for use in hybrid cars.

German automaker Daimler announced on Tuesday afternoon it will cooperate with Chinese giant Geely in order to build a next-generation combustion engine for use in hybrid cars.

“The companies plan to develop a highly efficient modular engine,” a spokesman for Daimler told Business Insider, adding that it would be used in hybrid drivetrains and manufactured in Europe and China.

Daimler said that factories all over Germany will be retooled gradually to build electric drivetrains while the manufacture of combustion engines will continue in the country.

News of the alliance was a surprise to Daimler’s works council at its factory in Untertuerkheim, which specializes in electric and gasoline powertrain assembly.

“We are speechless. There was not even a discussion about potential alternative manufacturing locations. We have the ability to build four cylinder engines in Untertuerkheim but there were not talks about it,” works council chief for Untertuerkheim Michael Haeberle said.

Efforts to share development costs between Geely and Daimler come as the growth potential for combustion engines faces the twin threat of the COVID-19 pandemic and a regulatory clampdown on vehicle emissions.

 


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