Swedish premium automaker Volvo Cars and ECARX, a smart car technology startup co-founded by Chinese automaker Geely’s Chairman will launch a joint venture to develop in-car operating software systems.
ECARX, which was founded in 2016 by Mr. Shen Ziyu, the company’s Chief Executive Officer, and Mr. Li Shufu, the Chairman of Geely, focuses on technology used in car chips, high-definition maps, and smart vehicles. The joint venture, which will be based in Gothenburg, Sweden will develop in-car operating software systems for Volvo Cars, other Zhejiang Geely Holding Group brands, and possibly other companies.
The company said that “The planned joint venture would allow both companies and the wider Geely Group to speed up technology development, improve cost efficiency and create new revenue streams.”
The news comes as ECARX, which claims to be worth more than $2 billion, explored opportunities to raise money in order to develop new technologies. Last month, ECARX raised over $200 million from investors including China Reform and another $195 million in October from Chinese multinational tech firm Baidu Inc and Susquehanna International Group of the US.
Recently, the global leader in automotive lidar hardware and software Luminar Technologies has strengthened its relations with Volvo Cars to build and market and an automated highway driving system to other automakers.
Volvo Cars, stylized as VOLVO, is a Swedish Automobile marque. It is headquartered in Torslanda in Gothenburg, Sweden. The company manufactures and markets sport utility vehicles, station wagons, hatchbacks, sedans, and compact executive sedans. Volvo Cars aim to become a global and diversified mobility service provider.