Photo: Renault Group
Geely and Renault Group have signed a 50/50 joint venture agreement to launch a new powertrain technology company that aims to become the global leader in developing, manufacturing, and supplying hybrid and ICE powertrains.
The new company will include 17 engine plants and 5 R&D centres in 3 different continents with 19,000 employees, all strategically structured to provide powertrain solutions for multiple OEMs.
Eric Li, Geely Holding Group Chairman, said:
“We are pleased to be embarking on this journey to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world. We are looking forward to working with Luca de Meo and his Renault team. With this agreement, we reiterate our commitment to leveraging our group-wide technological expertise and brand portfolio to pioneer the journey to greater sustainability and value creation which will lead to better consumer experiences.”
Aramco is evaluating a strategic investment in this new powertrain technology company which could support the growth of the company and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
The joint venture will be jointly led with equal board members to formulate and execute strategies and set the direction for the joint venture. The initial organization will secure the continuity of the business with two operational centres in charge of the respective operations: Madrid for Renault Group and Hangzhou for Geely.
An executive team will be based in the headquarters of the new company, which is intended to be established in the UK, to consolidate operations, build on synergies, and define future plans.
The new joint venture’s complementary product portfolio and regional footprint could offer solutions for 80% of the global ICE and hybrid market.
At launch, the new company is expected to supply multiple industrial customers including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi Motors Company, and PUNCH Torino. In the future, the joint venture will be capable of providing end to end solutions in powertrain technologies to third-party car brands and will welcome partners to further strengthen the value chain.
