The two brands signed an agreement for this Powertrain Company
Geely Holding Group along with Geely Automobile Holdings Limited and (Geely) and Renault Group have signed a non-binding framework agreement to create a new global company to develop, manufacture and supply class leading hybrid powertrains and efficient Internal Combustion Engine (ICE) powertrains.
Under this framework agreement, both brands will hold a 50-50 equity stake in this new company which will be a standalone global supplier of propulsion system solutions, producing next generation hybrid propulsion systems and developing carbon free and low emission technologies from five different global R&D centres.
Moreover, when this new powertrain company launches, they are expected to supply multiple industrial customers such as Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, Nissan and Mitsubishi Motors as well. The company also has plans to offer their powertrain technologies to third party automakers in the future too.
On top of that, this new powertrain company is set to operate in 17 plants in 3 continents and do so with about 19,000 employees in total. This should translate to a combined production capacity of over 5 million ICE, hybrid and plug-in hybrid engines and transmissions every year.
These will be supplied to over 130 countries and regions. This new powertrain company’s joint product portfolio and regional footprint may offer the solution for 80 percent of the global ICE market issues. Coincidentally, this agreement also happened on the same day as Renault Group Capital Market Day in Paris.
Renault Group CEO, Luca de Meo said, “As Renault Group accelerates with its Renaulution transformation to capture value on the entire new automotive value chain, we are pleased to have agreed plans for an ambitious partnership with Geely to keep developing the ICE and hybrid engine technologies that will remain a critical part of the automotive supply chain for decades to come.”
Eric Li, Geely Holding Group Chairman, said, “Today’s agreement with Renault Group will enable the creation of a global leader in hybrid technologies to provide highly efficient advanced solutions for automakers around the world.We are looking forward to working together with Luca de Meo and his Renault team to make this partnership a reality.”
Additionally, this new powertrain company will welcome partners and shareholders who wish to work together with the two brands to contribute to industry leading “cradle-to-grave” low and zero emission eco-systems across the globe. This agreement is expected to lead to a formal combination in 2023.
