The Daimler-Geely collaboration isn't exactly breaking news. The two companies have been working together for several years now. This includes their partnership with the Smart brand to make all-new EVs. So, what are the two up to these days?

Their latest project is all about hybrid powertrains; building them, to be exact. The two automakers signed a contract for the development of gas-electric systems in a bid to lower carbon emissions. Aside from that, they are also set to build engines together, likely to maximize the efficiency of their hybrids.

The goal of this new project is to apply the Daimler-Geely hybrid drive system in various models in their respective model ranges. That means we could see this powertrain in various Mercedes-Benz, Smart, Geely, and Volvo models in the coming years. Yes, Volvo will also benefit from this venture, as the Swedish automaker is owned by Geely.

“Our goal continues to be CO2-neutrality. By 2039, our ambition is a completely carbon-neutral new passenger car fleet,” said Markus Schäfer, member of the board of management of Daimler AG and Mercedes-Benz AG. “This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications,” adds An Conghui, president of Geely Holding Group, president and CEO of Geely Auto Group.

With that, we can expect more electrified offerings from the four automakers. At the very least, we might see more mild-hybrid engines within the decade.