Renault Group and Geely enter into a partnership, aiming to establish a pioneering powertrain technology firm
Renault Group and Geely Holding Group Form Joint Venture to Pioneer Hybrid Powertrain Technology
In a significant move towards a more sustainable future, Renault Group and Geely Holding Group have announced a joint venture aimed at becoming a global leader in the development, manufacturing, and supply of hybrid powertrains and highly efficient Internal Combustion Engine (ICE) powertrains.
The joint venture, which is set to be jointly led by Renault Group and Geely, will have equal board members and an executive team based in the UK. The initial organization will secure the continuity of the business with two operational centers in Madrid (for Renault Group) and Hangzhou Bay (for Geely).
Both Luca de Meo, CEO of Renault Group, and Eric Li, Chairman of Geely Holding Group, expressed their readiness to move forward with the venture. Eric Li expressed pleasure in embarking on a journey to become a global leader in hybrid technologies, while Luca de Meo emphasized that there is no time to lose in the global race for decarbonizing road transports, and it will not be business as usual.
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. Eric Li reiterated 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 expressed pride in joining forces with Geely to establish a new player in the global race for decarbonizing road transports. He also believes that combining expertise and assets is necessary for coming up with breakthrough innovations in the automotive industry.
Aramco, the Saudi Arabian national petroleum and natural gas company, has shown interest in the new powertrain technology company. In March 2023, Aramco signed a memorandum of understanding to invest in this venture with Musashi Seimitsu Industry Co., Ltd. from Japan. Aramco is currently evaluating a strategic investment in the company, which would support its growth and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
Eric Li looks forward to working with Luca de Meo and his Renault team, and Luca de Meo expressed gratitude to Eric Li for his trust in the joint venture. Eric Li believes that this agreement will lead to better consumer experiences.
This joint venture is a significant step towards a more sustainable future, with the complementary product portfolio and regional footprint of the two companies offering solutions for 80% of the global ICE and hybrid market. The new company is expected to make a significant impact in the global automotive industry.
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