Daimler, Mercedes-Benz's parent company, might have an interest in sidling up to Volvo, Reuters reports, citing Germany's Manager Magazin. The partnership could range from Daimler buying a small part of Volvo to supplying the Swedish automaker with engines for its cars.
Daimler declined to comment on what it called "speculation."
Earlier this year, reports circulated that Geely, Volvo's Chinese parent company, might want to. As it turned out, Geely's chairman had sneakily built up a $9 billion stake in the company in an attempt to bring the two closer together. It was done in part to offset the threat of new competition, especially in the autonomous space.
If Daimler pulls from Mercedes-Benz's engine lineup, there's plenty of interesting stuff from which to choose. It could rely on something simple like a turbocharged 2.0-liter I4, or it could get interesting and lean on the new 3.0-liter I6 and its 48-volt mild hybrid system. Hell, it could even sneak a 4.0-liter twin-turbo AMG V8 out of Germany, although that would be a stretch, given Volvo's push for electrification and not outright speed.
That's not to say Volvo isn't building some impressive engines of its own. Both the T6 and T8 powertrains take advantage of a turbocharged and supercharged 2.0-liter I4. The latter incorporates it into a plug-in hybrid powertrain that makes a net 400 horsepower and 472 pound-feet of torque. That's nothing to sneeze at.