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 power units. Aurobay will supply combustion engines, transmissions and hybrid systems to Volvo Cars, Geely, Lynk & Co.
Volvo Cars will transfer its engine factories in Sweden and China, as well as a research and development center for engine development, to the JV. What assets Aurobay will transfer to Geely is not specified.
The press service of Volvo Cars notes that such a move will allow the company to fully focus on the development of pure electric vehicles. According to the forecast, in 2025, 50% of Volvo's sales will come from electric vehicles, and 50% from hybrids with Aurobay internal combustion engines.
Geely expects that the joint venture will also sell its products to third-party automakers that are not part of the holding.
Volvo and Geely created a company to which they will transfer the production of all their internal combustion engines
