Geely and Renault partner to establish hybrid powertrain company

MANILA: In order to establish a new worldwide leader in the development, production, and supply of best-in-class hybrid powertrains and highly efficient internal combustion engine (ICE) powertrains, Geely and Renault Group have signed a non-binding framework agreement.

According to the framework agreement, Geely and Renault Group will each own 50 percent of the new company's shares.

With five global R&D facilities, the new firm will be a stand-alone global provider of propulsion system solutions, generating next-generation hybrid propulsion systems and creating low-emission and carbon-free technology.

At its debut, the new business is anticipated to serve a wide range of industrial clients, including Nissan, Mitsubishi Motors Corporation, Proton, Lynk & Co., Geely Auto, Volvo Cars, Renault, Dacia, and Lynk & Co.

The alliance may eventually provide powertrain innovations to independent automakers.

The new company is planned to operate 17 powertrain plants in three continents, employing around 19,000 people in total. It will have a combined capacity of over 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions. The new company’s joint product portfolio and regional footprint could offer solutions for 80% of the global ICE market.

News of this agreement has coincided with a Renault Group Capital Market Day in Paris, at which the Group has outlined a range of initiatives to speed-up its transformation and shared its mid-term financial outlook.

Luca de Meo, CEO Renault Group, commented on the partnership: ”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.

We’ll be able to offer best-in-class powertrain and electrified solutions to multiple OEM brands worldwide, unleashing the market potential for this low emission technology.”

Meanwhile, 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. This agreement builds on our commitment to leverage our group wide technological expertise and brand portfolio to continue our pioneering journey in sustainability and value creation that leads to consumer excellence.”

The new firm formed by Geely and Renault will accept partners and investors drawn by the chance to support industry-leading "cradle-to-grave" low and zero emission ecosystems globally.

A formal combination is anticipated to occur in 2023 as a result of this framework agreement. Over the upcoming months, further information about the new company is anticipated to be released.

Photos from Geely, Renault, Nissan

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