The new company will be a global supplier of complete powertrain solutions including next generation combustion engines, transmissions and hybrid solutions.foto: Karl Köhler
The new company will be a global supplier of complete powertrain solutions including next generation combustion engines, transmissions and hybrid solutions.
Volvo is becoming one of the brands that stands for change regarding the transition of the auto world into the electric mobility. Since the merging with the Chinese corporation Geely, the Swedish manufacturer started including a clear model of clean energy.
Geely Holding and Volvo have now established a new agreement to create a sub corporation named Aurobay. This new company will be the responsible to produce the new engines for both brands, including combustion, Hybrid and fully-electric engines.
Aurobay will initially be jointly owned by Volvo Cars and Geely Holding and as part of the creation of Aurobay, Volvo Cars will transfer all assets in its wholly owned subsidiary Powertrain Engineering Sweden, including its Skövde, Sweden-based engine plant including the related R&D team, along with its engine plant in China and other relevant assets to the joint venture in coming months.
The creation of the stand-alone joint venture and the transfer of assets allows Volvo Cars to focus fully on the development of its new range of all-electric premium cars in coming years. The company aims for 50 per cent of its global sales volume to consist of fully electric cars by 2025 while 50 per cent will be hybrids, with powertrains supplied by Aurobay. By 2030, it plans for every car it sells to be pure electric.
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.
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.