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Renault and Geely will finalize their joint venture for the production of combustion and hybrid engines by the end of February, after the agreement was signed in July 2023. The 50/50 joint venture will allow Renault to reduce costs, access new markets and strengthen the production of internal combustion and hybrid models which will represent a large part of the French automotive group’s registrations for a few more years.
Saudi Aramco will soon announce an investment plan
In fact, it is believed that around 93% of Renault’s new vehicle sales in 2023 came from combustion models and hybrids. The joint venture will produce engines for the two groups Renault and Geely, but also Volvo, Nissan, Mitsubishi and Punch Torino. It is also expected to supply some manufacturers in other industrial sectors. The world‘s largest oil producer, Saudi Aramco, which had expressed interest will soon announce a plan to invest in the joint venture.
Madrid-based Horse is the industrial side of the deal
The renamed Horse side of the business is based in Madrid, Spain and has 9,000 former Groupe Renaulti employees employed across 8 sites with a production capacity of 3.2 million units per year. Horse is already present in Argentina, Brazil, Chile, Portugal, Romania, Spain and Turkey as well as managing 3 research and development centers. In 2040, combustion and hybrid vehicles will still account for 50% of Renault’s sales. Horse’s goal is to offer the best low-emission solutions.
A partnership has been signed with Dumarey Automotive Italia
Horse recently signed a strategic agreement with Dumarey Group. The partnership is based, on the one hand, on the experience of the new company in the production of engines and, on the other, on the expertise of Dumarey Automotive Italia, the former Punch Torino in the most advanced propulsion systems. In particular, the two companies are expected to jointly develop Horse’s M920 engine, a 2,000 cc 4-cylinder turbodiesel with manual transmission and Euto 7 ready.