After signing a framework agreement, Renault Group and Geely have announced that they will be working together to develop new hybrid and internal combustion powertrains. The French automaker and the Chinese manufacturer will each hold a 50% stake in a new company which will develop systems and components for propulsion systems.
This new company will have around 19,000 employees working in 17 different plants in 3 countries. The company plans to produce over 5 million combustion engines, hybrid and plug-in hybrid powertrains, and transmissions. These will be delivered to over 130 countries and markets. In the long term, this joint venture could cover up to 80 percent of the global internal combustion engine market.
Chinese Geely is an ever-growing auto manufacturer with a hand in many pies, including Volvo, Lotus, Polestar, Proton, Lynk & Co., Zeekr, and Geometry. Most recently Geely has also taken an interest in Aston Martin Lagonda. The French Renault Group owns the brand under the same name, as well as Dacia and Alpine. In addition, Renault is part of the Renault-Nissan-Mitsubisi group.
This framework agreement is expected to lead to formal combination in 2023. Further details of the new entity are expected to be announced over coming months.
Source: Renault
