Geely and Volvo form a new joint venture for next-gen powertrain solutions

Volvo, along with its parent company Geely Automobiles set up a strategic alliance to create a new joint venture under the name Aurobay. The new venture is all set to explore the possibilities of powertrain operations.  As per the official press release surrounding the venture, it will be exploring new possibilities around next-generation combustion engines, transmissions, and hybrid solutions.

The aim of this new venture is to become the global supplier of complete powertrain solutions in the coming years. Further, the joint venture Aurobay will be jointly owned by Volvo and Geely, with the former brand transferring all its assets in its wholly-owned subsidiary Powertrain Engineering Sweden to Aurobay in the coming months.

The assets about to be included in the Aurobay venture will be its Skövde engine plant in Sweden and the related R&D team, engine plant in China, and other similar assets.

As per the company’s statement, “For Geely Holding, the new entity will benefit from the addition of a strong R&D team and technologically advanced and efficient combustion engines and hybrid powertrains for its portfolio of brands, creating a strong base for substantial operational, industrial and financial synergies.”

Adding to the statement by Geely, Volvo Cars stated, “The new stand-alone business also has the ambition to supply customers outside of the Geely Holding Group, and aims to be a leading player in the supply of high-quality, low emission, cost-efficient powertrains solutions.”

Talking about its decision behind merging both the brands to a standalone venture, the move will allow Volvo to focus on its future plans that include the introduction of a new range of all-electric premium cars in the coming years. The Swedish automaker aims at getting over 50 per cent of its global sales volume with electric cars by 2025, followed by the other 50 per cent by 2030.

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