Volvo Cars and Geely Automobile Holdings Ltd., China has decided to drop its merger plans and work as separate entities.
Both companies will maintain their separate structures and work together on electrification, software, and autonomous-driving technology.
The collaborated powertrain project will be moved to another company which will upgrade focus around the advancement of electric vehicles.
“This is about maintaining top-line momentum.” A merger isn’t always positive. You risk losing momentum because there’s too much internal focus,” said Volvo Cars Chief Executive Officer Hakan Samuelsson.