Volvo and Geely will jointly produce all their internal combustion engines

Volvo and Geely will jointly produce all their internal combustion engines

FineAuto

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.

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