Volvo and parent company Geely have confirmed plans to merge into a single company.

The Swedish car maker has been owned by Chinese giant Geely Holding since 2010 has remained a separate firm from Geely Automobile Holdings, which owns brands including Lotus, Polestar, Lynk&Co, Proton and LEVC. 

Volvo Cars and Geely will create a joint working group to prepare a proposal to their respective boards.

Bosses say the move would accelerate financial and technological synergies between the two companies, claiming it would have “the scale, knowledge and resources to be a leader in the ongoing transformation” of the automotive industry. 

Li Shufu, chairman of Geely Holding Group said: “A combination of the two companies would result in a strong global group.

“We look forward to working with Håkan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the Group while maintaining the competitive advantage and the integrity of each individual brand.”

A Volvo spokesperson has said the aim was to finalise merger by the end of the year.

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