The announcement of Volvo to propose an electrical declination of each of its next cars does not mean the end of the engines. But advancing towards electric mobility could undermine the profitability of investments to develop new engines, which is why Volvo decided to turn to partners instead of continuing to produce its “home” engines.
For hybrid cars, Volvo would think, according to our colleagues in the Automobilwoche, that they would no longer design thermal engines. The Swedish giant would thus turn to the competition to buy these engines, and discussions had already already begun with the group Volkswagen and BMW.
Nevertheless, the switch to the electric makes things change. Let us remember that in 1990, Volvo launched its first modular engine, a 6-cylinder petrol line, then declined in 5- and 4-cylinder versions and then in diesel. At the time, Volvo clearly saw the production of its own engines as strategic. And this was still the case after the takeover by Geely, when it was necessary to cut the bridges with Ford. And therefore design new engines.
But electrification is changing the situation. And Volvo seems to consider again the option of purchasing its thermal engines from another manufacturer. What frees up resources dedicated to the design or production of engines … Volvo would thus have contacted Volkswagen and BMW.