Volvo Car to Sell 33% Stake in Aurobay to Geely Holding
November 08 2022 - 12:01AM
Dow Jones News
By P.R. Venkat
Volvo Car AB will sell its 33% sake in Aurobay to Geely
Automobile Holdings Ltd. as part of the Swedish company's move to
become a fully electric company in the next eight years.
During this period of transition, Aurobay will remain a
strategic partner to Volvo cars and the sole supplier of hybrids
and mild-hybrid powertrains, Volvo said Tuesday.
"As we continue to execute on our strategy, transactions like
this will be an important supplement to our investments and
partnerships for the future," Johan Ekdahl, chief financial officer
for Volvo Cars, said.
The company said it will focus its investments and capital
allocation on developing high-performance, fully electric
powertrains.
Aurobay was formed as a stand-alone business in 2021 when Volvo
Cars Powertrain Engineering Sweden--including its Skovde-based
engine plant and related research-and-development team, along with
its China engine plant--was carved out from Volvo Car Group.
Terms of the deal weren't disclosed, though Volvo said proceeds
will be used for expansion, including its new production line for
electric motors in Skovde.
The transaction is expected to be closed before end of this
year, the company said.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
November 07, 2022 23:46 ET (04:46 GMT)
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