Volvo is helping Geely develop next-generation infotainment systems for all its brands.

Volvo announced Wednesday that it has signed a memorandum of understanding with Ecarx to form a joint venture aimed at developing a next-generation infotainment system that will be available across all Geely Automobile brands.

Geely is the parent company of Volvo and the main backer of Ecarx, which was founded in Hangzhou, China in 2016; Ecarx specializes in Android-based automotive infotainment systems. It has already partnered with a number of brands, including Lynk & Co. and Proton, both under the same Geely brand.

The joint venture will be based in Volvo's hometown of Gothenburg, Sweden, and will be led by Jan-Erik Larsson, currently head of Volvo's R&D operations in China, and is expected to be operational in Q3 2021.

The new infotainment system is expected to include both software and hardware components and will be an evolution of Volvo's existing Android-based infotainment system.

Volvo will be responsible for integrating the system into its own vehicles and those of Polestar, another Geely brand, while Ecarx will be responsible for Geely's other brands and potentially third parties. The system will be designed to have a user interface unique to each brand.

Volvo says the joint venture will help speed up technology development, improve cost efficiency, and create new revenue streams. In addition, using a common system across multiple brands will make it easier for third-party software developers to launch new applications.

"Through this joint venture, we can accelerate the development of the system, bring high-quality infotainment to more cars, and maximize incentives for companies and developers to create great services and apps for users of the platform." Volvo's head of research and development, Henrik Green, said in a statement.