“A global leader in the development, production, and distribution of first-class hybrid drives and highly efficient combustion engines”.
As per the new agreement, Geely and Renault will each hold a 50:50 interest in the new entity. It will be an independent global manufacturer of propulsion systems that will produce next-generation hybrid drives.
The development will take place in five globally distributed research centers for carbon-free and low-emission technologies, according to Renault. At launch, the new company is expected to supply several industrial customers, including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, as well as Nissan and Mitsubishi Motors Company.
The total capacity of the plant amount to over five million combustions, hybrid and plug-in hybrid engines, and transmissions per year, according to a statement. “The combined product portfolio and global presence of the new company could provide solutions for 80 percent of the global combustion market,” the partners explain.
Luca de Meo, CEO of Renault Group, said: “We are delighted to have entered into an ambitious partnership with Geely to continue the development of combustion and hybrid engine technologies that will remain an important part of the automotive value chain for decades to come. We will be able to offer best-in-class powertrain and electrification solutions to several automakers worldwide and unlock the market potential for this low-emission technology.”
“Today’s agreement with Renault Group enables the creation of a global leader in hybrid technologies that provide highly efficient, advanced solutions to automakers around the world,” said Eric Li, Chairman of Geely Holding Group.
The new company will host partners and shareholders “who are willing to contribute to industry-leading, low- and zero-emission ecosystems worldwide,” the statement concludes.