The head of Geely is now the biggest single shareholder of Daimler. A German business magazine says that the purchase of those shares could lead to Daimler buying a part of Volvo and possibly supplying engines to the Swedish automaker.

Financial filings from February showed that Geely chair Li Shufu had purchased $9 billion in Daimler stock, giving him just under 10 percent of the company. Manager Magazin reports that as a result, Geely and Mercedes could start working together.

That collaboration allegedly includes a jointly created EV platform, although Manager Magazin says that the pair will not produce battery cells together. The report also says that Daimler sources have said the company is ready to supply Volvo with engines and other components and could look at purchasing part of Volvo.

Volvo has previously said it won't be designing another generation of internal combustion engines, so if electrification hasn't reached the desired level of progress, Mercedes engines could fit the bill.

[source: Manager Magazin ]