A non-binding framework agreement has been signed between Geely Holding, Geely Automobile Holdings and the Renault Group to form a new company that will develop, manufacture and supply hybrid powertrains and highly efficient ICE powertrains. Under the new framework agreement, Geely and Renault will hold 50-50 equity stakes.
The new company is to be an international standalone supplier of propulsion system solutions and will manufacture next-generation hybrid propulsion systems. Additionally, the new company aims to develop carbon free and low-emission technologies from five different R&D centers around the world.
Upon its launch, the company is expected to supply a range of well-known OEMs including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton and Nissan and Mitsubishi Motors. The company has the potential to offer its powertrain technologies to additional third-party car brands further down the line.
At present, 17 powertrain plants in three continents are planned to conduct company operations with a total of 19,000 employees. Each year the sites are expected to have a combined capacity of five million internal combustion, hybrid and plug-in hybrid engines and transmissions. These products will then be distributed to 130 countries and regions.
“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,” said Luca de Meo, CEO, Renault Group. “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.”
“Today’s agreement with Renault Group will enable the creation of a global leader in hybrid technologies to provide highly efficient advanced solutions for auto makers around the world,” explained Eric Li, chairman, Geely Holding Group. “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.”