After signing the framework agreement, the Renault Group and Geely have officially announced a new partnership that will focus on the development of a new hybrid and internal combustion powertrain. The French automaker and Chinese manufacturer will each hold a 50-50 equity stake in the newly founded company, which will operate as a standalone supplier of systems and components for the propulsion system.
Initially, the new company will manufacture and supply next-generation hybrid powertrains to brands including Renault, Dacia, Geely, Volvo, Lynk & Co, Proton, Nissan and Mitsubishi. However, in the future, the scope of operation should be expanded to third-party brands from the automotive industry. The new company will also develop emission-free technology in five global research and development centers around the world.
Under the new agreement between Renault and Geely, the newly founded company will employ approximately 19,000 people worldwide and will operate a total of 17 power plants in 3 countries. Initial estimates suggest it will produce more than 5 million combustion engines, hybrid and plug-in hybrid powertrains, and transmissions and ship them to more than 130 countries and markets. Ultimately, the joint venture portfolio could cover up to 80 percent of the global internal combustion engine market.
“As the Renault Group accelerates with the Renaulution transformation to capture value across the new automotive value chain, we are pleased to have agreed an ambitious partnership plan with Geely to continue to develop ICE and hybrid engine technologies that will remain an important part of the automotive supply chain for decades to come. coming,” commented Renault CEO Luca de Meo.
Geely is currently one of the largest manufacturers in the automotive industry with a controlling stake in a growing list of automakers, including Volvo, Lotus, Polestar, Proton, Lynk & Co, Zeekr and Geometry. Recently, the company also made an investment in Aston Martin Lagonda. The new agreement with Renault will culminate into a formal combination in 2023 when more details are expected to be announced.
