Geely, Renault sign joint venture agreement for powertrain company

Geely and Renault have joined forces and signed an agreement to set up a joint venture company, with the aim of supplying both internal combustion engines (ICE) and hybrid powertrains to multiple car brands worldwide. 

Geely's joint venture with Renault will be formalized with a new company by 2023 

In a statement issued November 8, Renault announced that both companies will hold equal shares in the new company, intended as a standalone supplier of propulsion system solutions across the globe. Its products will include next-generation hybrid powertrains as well as carbon-free and low-emission power units developed in five global R&D centers. 

“We are pleased to have agreed plans for an ambitious partnership with Geely to keep developing ICE and hybrid engine technologies that will remain a critical part of the automotive supply chain for decades to come,” said Renault Group CEO Luca de Meo. 

Renault's alliance partners Mitsubishi and Nissan will also be included in the roster of customers

“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,” seconded Geely Holding Group Chairman Eric Li. 

The non-binding framework agreement is expected to be formalized in 2023 with a new corporate entity, which will count Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, and Proton as its first customers. By virtue of their alliance with Renault, Japanese brands Nissan and Mitsubishi will also receive powertrains from the new partnership. Prospects for supplying third-party automakers in the future are also being explored. 

The first product of Renault and Geely's collaboration is expected in 2024

Renault adds that plans are being made for 17 powertrain plants in three continents under the new company, with a total staff number of 19,000. The combined capacity is projected to be 5 million powertrains spanning ICE, hybrid, and plug-in hybrid units, exported to over 130 countries and regions. As much as 80 percent of the global ICE market is seen to benefit from the company’s expected joint product portfolio.   

Both automakers have previously announced that the first product under the joint venture between Renault Korea Motors (RKM) and Geely, a hybrid midsize crossover, will be launched in 2024. 

Witness more corporate tie-ups among the world’s carmakers at Philkotse.com.