Volvo and ECARX are teaming up to develop smart car software systems

Volvo and ECARX are partnering to develop in-car operation software systems.
Volvo and ECARX are partnering to develop in-car operation software systems.
Image: Supplied

Swedish premium car maker Volvo Cars will launch a joint venture with ECARX, a smart car technology startup co-founded by Geely's chairperson, to develop in-car operation software systems, the companies said on Tuesday.

ECARX, founded by its chief executive Shen Ziyu and Geely chairperson Li Shufu in 2016, focuses on technology used in car chips, high-definition maps and smart vehicles.

The joint venture, which will be headquartered in the Swedish city of Gothenburg, will develop in-car operation software systems for Volvo Cars, other brands under Zhejiang Geely Holding Group and potentially other companies.

"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 companies said.

The announcement comes as ECARX has sought to raise funds in recent months to develop future technologies. It has said its valuation exceeds $2bn (roughly R29,801,160,000).

ECARX raised more than $200m (roughly R2,980,116,000) from investors including China Reform last month and $195m in October in a funding round that included Baidu Inc and US firm Susquehanna International Group.


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