Volvo Cars and the Chinese concern Geely Holding, which owns it, have created a joint venture Aurobay, which will be transferred to the development and production of powertrains. Aurobay will supply combustion engines, transmissions and hybrid systems for Volvo Cars, Geely, Lynk & Co.
Volvo Cars will transfer its engine plants in Sweden and China to the JV, as well as a scientific and technical center for engine development. What Aurobay assets Geely will transfer is not specified.
Volvo Cars’ press service notes that such a move will allow the company to fully focus on the development of clean electric vehicles. According to the forecast, in 2025, 50% of Volvo’s sales will come from electric vehicles and 50% from Aurobay ICE hybrids.
Geely expects the JV to also sell its products to third-party automakers outside the holding.