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March 23, 2021 07:33 AM

Volvo will form infotainment JV with Chinese tech company

ECARX will develop Android-based systems for Geely, Lynk & CO, Proton

Douglas A. Bolduc
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    The joint venture will combine Volvo and ECARX

    Volvo Cars will set up a joint venture to accelerate its development of a new, scalable infotainment platform that can be shared with sister brands such as Polestar and Geely Auto as well as third parties.

    The automaker will partner with Chinese technology company ECARX, which was co-founded in 2016 by Volvo-owner Li Shufu. ECARX currently develops and integrates Android-based infotainment systems in China for Volvo's sister brands Geely Auto, Lynk & CO and Proton.

    The venture's other goals include improving cost efficiency, creating new revenue streams as well as luring talented software executives.

    One of Volvo Chief Technology Officer Henrik Green's long-term goals is to turn the automaker's R&D arm into a software development company.

    "This is definitely a cornerstone in our strategic transformation to boost our vertical integration to become a software company," Green told Automotive News Europe in an interview. This will be Volvo's answer to Volkswagen Group's Car.Software.Org, which employs about 5,000 and develops the VW.OS operating system.

    The formation of the new, as-yet-unnamed company is still subject to final negotiations between Volvo and ECARX. Volvo will have a 60 percent stake while ECARX will control the rest.

    Barring any delays, the partners will start operations at the new company's headquarters in Gothenburg, Sweden, in the third quarter, with a staff of about 100 people.

    That total will include about 70 Android, Linux and BlackBerry QNX software developers who will transfer from Volvo, said Jan-Erik Larsson, a longtime Volvo executive who has been tapped to be chief executive of the new company.

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        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
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        • Capgemini and Renault Group: Leaders on unlocking automotive sustainability with circular economy strategies and EV battery solutions
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