Renault Group and Geely Holding Group have signed a non-binding framework agreement to create a new standalone powertrain company. The new company will make hybrid powertrains and low-emission internal combustion engine (ICE) powertrains. Both parties will each hold 50% of the company shares and the framework agreement should be finalized in 2023.
Upon the powertrain company’s launch, it is expected to supply several industrial customers. This includes Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, as well as Nissan and Mitsubishi Motors Company.
Renault’s E-Tech hybrid powertrain
The new company is expected to operate 17 powertrain mechanical plants on 3 continents, with approximately 19,000 employees. Annually, the company will be able to produce more than 5,000,000 powertrains to serve over 130 countries and regions. Renault says the combined product portfolio and geographic footprint of both companies could provide solutions for 80% of the global ICE market.
The announcement of this agreement coincides with Renault Group’s Capital Market Day in Paris, during which the group presented a series of initiatives aimed at accelerating its transformation and presenting its medium-term financial objectives.
Renault Group CEO, Luca de Meo said, “As Renault Group accelerates its transformation with Renaulution to capture the value of the entire new automotive value chain, we are pleased to have reached an agreement for an ambitious partnership with Geely in order to continue to develop the technologies for internal combustion and hybrid engines which will remain essential elements of the automotive supply chain in the decades to come. We will be able to offer state-of-the-art powertrains and electrified solutions to many automotive brands around the world, unlocking the market potential of this low-emission technology.”
Geely Holding Group Chairman, Eric Li said, “Today’s agreement with Renault Group will create a global leader in hybrid technologies to provide advanced, energy-efficient solutions to automakers around the world. We look forward to working with Luca de Meo and his Renault team to make this partnership a reality. This agreement builds on our commitment to leverage our group’s technology expertise and brand portfolio to continue our pioneering journey in sustainability and value creation, which leads to excellence for consumers.”
Moving forward, the new company will be able to welcome new partners and shareholders. More information will be released in the coming months.
Keyword: Renault and Geely form new engine company – to supply Proton, Nissan, Mitsubishi