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Daimler and Volvo could jointly develop internal combustion engines

BERLIN — Luxury German carmaker Daimler and Volvo, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further. Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs. In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines. Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains. Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China. Geely bought Volvo Cars in 2010 from Ford, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands. Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely's Lynk brand. Both companies share and develop common vehicle platforms. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Next-generation Volvo XC90 interior revealed

Volvo has officially kicked off the slow burn that will lead to the eventual unveiling of the next-generation XC90, in August. Its initial foray into the public eye will be with these, a series of 20 images of the new three-row SUVs interior, which is very, very Swedish (there are even the most adorable little Swedish flags on the seats).
In all, it looks like a positively sumptuous place to sit, with sharp looking woods and a crystal shifter, crafted by Orrefors Glassworks in Sweden. It's a clean, minimalist design that we imagine will age quite nicely.
Featured quite prominently - and the main part of the cabin that doesn't strike us as minimalist - is the very large touchscreen. Aligned in a portrait layout, which hasn't been done by too many automakers, it will be home to a new type of infotainment system that will make its debut in Volvo's flagship SUV. It also looks like we can expect digital gauges when the XC90 finally arrives.

Volvo's plan for China: sell them on the clean air inside the car

Large Chinese cities aren't known for having clean air. Just this week, the Chinese city of Harbin filled with record levels of smog after starting the city's coal-fired heating system, according to CNN. But Li Shufu, the chairman of Geely, Volvo's parent company, says the automaker's astute attention to cabin comfort in areas such as air filtration is a selling point for the Swedish automaker in China, Forbes reports.
Shufu says when he is inside a Volvo, he feels like he's in Northern Europe, but when the door is opened, he feels like he's in Beijing. The chairman made the remarks at the fourth annual Global Auto Forum (GAF) in China (which also happened to be attended by Alan Mulally, CEO of Ford, which was Volvo's owner until 2010), where he emphasized Geely's hands-off approach to managing Volvo, saying, "Geely and Volvo are brothers, not father and son."
While good filtration contributes to cabin comfort, the way we see it, Shufu also is allowing Volvo to play to its most well-known strength: safety. Smog protection via air filtration might not seem like the most important safety feature for a car in the US (unless you live in Los Angeles), but when you consider that Harbin's level of fine particles was up to 30 times higher than the World Health Organization's recommended standard on Tuesday, we'd think twice about that. Fine particles, which are 2.5 micrometers in diameter or less, are considered to be the most harmful to health.