Volvo Bets On In-House Electric Motor Development

With mass electrification is near, the company does not want to rely on suppliers.

Volvo Cars announced significant investments in designing and developing electric motors for next-generation electrified cars in-house.

The Swedish brand (part of Geely) has set a target to achieve 50% BEV share out of its total volume by 2025, while the remaining half will be plug-in hybrids or hybrids.

Because of this massive electrification movement, in-house development of electric motors might translate to higher profitability, better optimization and higher efficiency, as well as some competitive advantages. Tesla’s example of vertical integration seems to prove it’s the right way to go.

“Bringing the development of electric motors in-house will allow Volvo Cars engineers to further optimise electric motors and the entire electric driveline in new Volvos. This approach will allow engineers to make further gains in terms of energy efficiency and overall performance.”

The image presents a drive unit that integrates an electric motor, inverter and single-speed transmission: