Geely and Volvo’s new joint powertrain operations, Aurobay could supply future Proton models

Looks like Volvo’s ownership under Geely has created another joint venture. This time the powertrains operations under both the Swedish carmaker and its Chinese parent will be combined and called Aurobay.

The new company will be a global supplier of complete powertrain solutions, including next-generation combustion engines, transmissions, and hybrid solutions.

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Volvo Cars will transfer all assets of its wholly-owned subsidiary, Powertrain Engineering Sweden to Geely Holding in the coming months. This transfer of ownership includes the Skövde, Sweden-based engine plant, the related R&D team, along with its engine plant in China.

As a result of this transfer, Volvo Cars will entirely focus on the development of its range of all-electric premium cars. This is in line with its aim of every car sold to be purely electric by 2030.

Also read: Volvo Cars to go fully electric by 2030, says no future for petrol engine cars

Meanwhile, Geely Holding would see a stronger R&D team in developing more advanced and efficient combustion engines and hybrid powertrains for its portfolio of brands. These would include Proton, which is 49.9% owned by Geely Holding.

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Besides, this new stand-alone business also has plans to supply customers outside of the Geely Holding Group. Aurobay aims to be a leading player in the supply of high-quality, low emission, and cost-efficient powertrains solutions.

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