Renault Group and Geely team up in a partnership to establish a leading firm specializing in cutting-edge powertrain technology.
Renault Group and Geely Holding Form Joint Venture for Sustainable Powertrain Solutions
In a significant move towards a more sustainable future, Renault Group and Geely Holding Group have announced a joint venture to launch a new powertrain technology company. The joint venture aims to become the global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient internal combustion engine (ICE) powertrains.
The new company, which is expected to be established in the UK, will be jointly led by Renault Group and Geely, with equal board members to formulate and execute strategies. The initial organization will secure the continuity of the business with two operational centers in Madrid (for Renault Group) and Hangzhou Bay (for Geely).
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. Luca de Meo, CEO of Renault Group, expressed his pride in joining forces with Geely to establish a new player in the global race for decarbonizing road transports. Eric Li, Chairman of Geely Holding Group, expressed his enthusiasm about embarking on a journey to become a global leader in hybrid technologies.
Eric Li's statement indicates Geely's intention to provide low-emission solutions for automakers worldwide. Luca de Meo emphasized that coming up with breakthrough innovations requires combining expertise and assets. He reiterated that there is no time to lose in the global race for decarbonizing road transports, and it will not be business as usual.
Aramco is evaluating a strategic investment in this new powertrain technology company, which could support its growth and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies. However, neither Luca de Meo nor Eric Li mentioned Aramco's potential strategic investment in the new company.
Renault Group and Geely will transfer Intellectual Property to the operational centers enabling them to be fully autonomous in developing future powertrain technologies. Subject to applicable laws and regulations, Geely Auto and Renault will enter into a long-term procurement agreement for ICE, hybrid, and plug-in hybrid powertrains (engine and transmissions) for passenger vehicles, and Renault will also procure powertrains from the joint venture for light commercial vehicles and the development of hybrid batteries.
Eric Li looks forward to working with Luca de Meo and the Renault team, and he reiterates Geely's commitment to leveraging group-wide technological expertise and brand portfolio to pioneer the journey to greater sustainability and value creation. Luca de Meo states that the new joint venture's complementary product portfolio and regional footprint could offer solutions for 80% of the global ICE and hybrid market.
The new powertrain technology joint venture between Renault Group and Geely Holding is a significant step towards a more sustainable future, marking a new era in the global automotive industry.
