GEELY, VOLVO LAUNCH POWERTRAIN UNIT AFTER MERGER AXED

China's Geely Automobile and its Swedish sister firm Volvo Cars will abandon merger plans but launch a new entity to combine their powertrain operations and expand co-operation on electric vehicles, the companies said. A year ago the two said they were planning to merge, giving Volvo access to public markets, as global automakers pursue alliances to respond better to the cost of the transition to electric cars, tougher emission rules and autonomous driving. Geely and Volvo on Wednesday said they would preserve with their existing separate corporate structures after “a detailed review of combination options.” The new entity, expected to become operational this year, will provide engines, transmissions systems and petrol-electric hybrid systems for use by both companies as well as other automakers.