Geely Holdings and Volvo Cars announced the establishment of a new joint venture company, Aurobay, to manage their powertrain business. The new independent company will become a global supplier of complete power system solutions, including next-generation internal combustion engines, transmissions and hybrid solutions.
Aurobay will initially be jointly owned by Volvo and Geely, the former transferring all the assets of its wholly-owned subsidiary, Swedish Powertrain Engineering Company. Assets include its Skövde engine plant and related R&D team in Sweden, as well as its engine plant in China and other related assets in the coming months.
With the complete transfer of assets, Volvo said it can fully focus on the development of a new series of pure electric high-end cars.As a reminder, the Swedish automaker is ambitious-it plans By 2025, all-electric vehicles will account for 50% of its global sales, And the remaining 50% will be hybrid vehicles. The power systems used in these vehicles will all be provided by Aurobay. By 2030, all cars in the Volvo family will be purely electric.
Geely Holdings stated that with a strong R&D team and cutting-edge technology, the new entity has the ability to develop and produce advanced and efficient electric power systems for its brand family, creating a strong foundation for achieving substantial operational, industrial and financial synergy.
In addition to providing power systems for Geely series brands, Aurobay also has the ambition to supply power systems to other parties. In the long term, it plans to become a leader in providing high-quality, low-emission, and cost-effective power system solutions.