After Volvo's parent Geely took a significant stake in Mercedes-Benz parent Daimler, it looks like the German company may reciprocate by making a small investment in the Swedish automaker. According to Germany's Manager Magazin (via Reuters), Daimler is exploring a scenario where it would share engine technology with Volvo and take a small stake in the Swedish firm, possibly giving Volvo a conventional powertrain larger than its current suite of four-cylinder gas and diesel engines.

The German trade publication reported Daimler could take a stake of "a couple of percent" in Volvo, though it didn't cite any sources. Volvo declined to comment on the report. A spokesperson for Daimler said, "This is pure speculation, which we will not comment on." The news comes just a few weeks after it was revealed Li Shufu, chairman of Volvo's parent company Geely, accumulated a $9 billion stake in Daimler as a way for it to fend off electric-vehicle competitors. It was a bet the chairman hoped would allow Geely to access Daimler's electrification technology.

Since the revelation, chief executive of Daimler Dieter Zitsche has stated he's open to working with Li Shufu and Geely, but it would depend on whether Daimler's current Chinese partner BAIC would agree to such cooperation. Before it invested in Daimler, Geely considered taking a stake in Fiat Chrysler Automobiles and BMW. Aside from Volvo, Geely also owns upstarts Lynk & Co. and Polestar, along with legendary British sportscar manufacturer Lotus, which it bought from Malaysia's Proton last year.