ROME – The agreement that shakes the automotive world: Geely and the Renault Group sign a framework agreement to create the leader in powertrains. A new global company will be born to develop, manufacture and supply low-emission hybrid engines and transmissions. Under the framework agreement, Geely and Groupe Renault will respectively hold 50% of the shares in the new company. This new partnership aims to create the leader of the next generation of low-emission hybrid thermal powertrains to meet global demand for the coming years. An initiative that is part of the Renault Group’s Renaulution transformation plan, and of Geely’s transition to smart electric mobility services.
The new company will supply a full range of state-of-the-art engines and transmissions, including electrified versions, to numerous brands around the world. Once created, the new company will comprise 17 mechanical engine and transmission plants and 5 R&D centers spread across 3 continents with approximately 19,000 employees serving 130 countries. The new organizational structure, which provides for a solid strategic basis and an attractive business model, will also welcome other partners in due course. The new company will be an independent global supplier, capable of producing next-generation hybrid powertrains and developing decarbonised and low-emission technologies in five global R&D centers. Upon launch, the new company will have to supply several industrial customers, including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, as well as Nissan and Mitsubishi Motors Company. The partnership could later supply powertrains to other manufacturers as well. The new company is expected to operate 17 powertrain mechanical plants on 3 continents, with a total of approximately 19,000 employees. It will have a combined capacity of more than 5 million transmissions and internal combustion engines per year, hybrids and plug-in hybrids, to serve over 130 countries and regions. The combined product portfolio of Geely and the Renault Group and the geographic footprint of the new company could offer solutions to 80% of the world market for internal combustion engines (ICE). The announcement of the agreement comes on the day of the Renault Group’s Capital Market Day in Paris, during which the Group presents a series of initiatives to accelerate its transformation and shares its medium-term financial objectives.
Luca de Meo, CEO of the Renault Group: “As the Renault Group accelerates its transformation with Renaulution to capture the value of the entire new value chain in the automotive sector, we are delighted to have concluded an ambitious partnership agreement with Geely for continue to develop the technologies for thermal and hybrid engines that will continue to be essential elements of the automotive supply chain in the coming decades. We will be able to offer cutting-edge powertrains and electrified solutions to many automotive brands around the world, thus leveraging the market potential of this low-emission technology “.
Instead, for Eric Li, President of the Geely Holding Group, “The agreement concluded today with the Renault Group will allow us to create a world leader in hybrid technologies, to provide advanced and energy-efficient solutions to automotive manufacturers all over the world. . We look forward to working with Luca de Meo and the Renault team to make this partnership a reality. This agreement builds on our commitment to leverage our Group’s technological expertise and brand portfolio to continue our pioneering journey to level of sustainable development and value creation, bringing excellence to consumers “.