Geely & Renault Group to Launch Next Gen Powertrain Technology Company

Geely Automobile Holdings Limited and Renault Group have signed a binding 50/50 joint venture (JV) agreement to launch a new powertrain technology company. The JV aims to develop, manufacture, and supply hybrid powertrains and highly efficient ICE powertrains.

The energy giant Aramco, which signed letter of intent with Renault and Geely on March 2, 2023, is evaluating a strategic investment in this new powertrain technology company.

An executive team will be based in the headquarters of the new company, which is intended to be established in the UK, to consolidate operations, build on synergies, and define future plans.

The new JV’s complementary product portfolio and regional footprint could offer solutions for 80% of the global ICE and hybrid market.

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.

In the future, it will be capable of providing end to end solutions in powertrain technologies to third-party car brands and will welcome partners to further strengthen the value chain.

Eric Li, Geely Holding Group Chairman, says: “We are pleased to be embarking on this journey to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world. We are looking forward to working with Luca de Meo and his Renault team. With this agreement, we reiterate our commitment to leveraging our group-wide technological expertise and brand portfolio to pioneer the journey to greater sustainability and value creation which will lead to better consumer experiences.”

Luca de Meo, CEO Renault Group, adds: “Facing today’s automotive challenges, no one can claim to have all the solutions, alone. Coming up with breakthrough innovations requires to combine expertise and assets. When it comes about the global race for decarbonizing road transports, there is no time to lose, and it will not be business as usual.  Today, we are proud to join forces with a great company like Geely to set up a new player, up to the challenge, able to disrupt the game and open the way for ultra-low emissions ICE technologies. I want to thank Eric Li Shufu for his trust: we are now ready to move forward!”

Renault says it will procure powertrains from the JV for light commercial vehicles as well as the development of hybrid batteries.