Volvo sees many automotive possibilities for Microsoft's HoloLens technology (Photo: Volvo)

Volvo Cars is working with Microsoft to jointly develop next-generation automotive technologies. The cooperation will look at autonomous driving technologies and the use of connected-car data.

Volvo and Microsoft this week demonstrated how the use of Microsoft's HoloLens mixed-reality computer system could allow customers to virtually configure cars in three dimensions.

Bjoern Annwall, Volso's sales and marketing boss, said Hololens technology could allow dealers to take a car configurator on the road for use in small, so-called pop-up stores or shopping malls. This would open up new sales channels and introduce cars to a larger potential audience, he said in a press release.

Volvo and Microsoft hope that the IT group's technologies can be adapted for automotive use in a range of areas, including autonomous driving and predictive analytics.