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Volvo Cars Venture Says Automakers Should Pool Combustion Tech

  • Bundling assets to help advance tech, gain scale: Aurobay
  • Aurobay seeking to grow quickly targeting new customers
Bloomberg business news
Volvo Cars CEO on EX90 SUV, Sales, Electrification

Carmakers should consolidate their legacy businesses as electric cars take off with combustion engines set to be in demand for years to come, according to powertrain unit Aurobay.  

Bundling non-electric assets would help to improve hybrid-combustion technology and add scale to save costs, said Michael Fleiss, chief executive officer of Aurobay’s Swedish branch, Powertrain Engineering Sweden AB. Volvo Car AB and parent Zhejiang Geely Holding Group Co. this summer finalized their Aurobay venture, comprising two powertrain plants in Sweden and China, with plans to win outside customers.