Volvo Cars will divest its 33% stake in engine supplier Aurobay to Geely Holding, in order to put itself in a position to achieve a fully electric lineup of vehicles by 2030.

Aurobay was formed as a stand-alone business in 2021 when Volvo Cars’ subsidiary Powertrain Engineering Sweden, was carved out from the Volvo Car Group.

During this period of transition to a fully electric future, Aurobay will remain a strategic partner to Volvo Cars, and its sole provider of hybrid and mild hybrid powertrains. Volvo Cars, meanwhile, will focus on developing fully electric powertrains.

“The automotive industry is going through rapid change, and Volvo Cars is committed to leading this transformation,” said Johan Ekdahl, CFO of Volvo Cars. “As we continue to execute our strategy, transactions like this will be an important supplement to our investments and partnerships for the future.”

Source: Volvo Cars