Renault and Geely have signed a joint venture agreement to create a new $7.7 billion company with a mission to develop hybrid powertrains and more efficient internal combustion engines.
According to a press release from Renault, the two automakers will each receive a 50% stake in the joint venture. This agreement follows a letter of intent signed by Renault, Geely and the oil company Aramco on 2 March 2023. Aramco is “evaluating” the investment in the new joint venture, which will finance the research on synthetic fuels and hydrogen, the statement said.
Geely factory in China
The joint venture, which will operate out of a Renault facility in Madrid and a Geely facility in Hangzhou Bay, China, “aims to be a leader in hybrid and efficient powertrain solutions.” next-generation high to meet worldwide demand in the years to come.”
The plans include an annual production capacity of five million units of internal combustion engines, hybrid and plug-in hybrid components as well as an annual gearbox. These components will be supplied to Renault and Geely for use in their passenger cars. That will include cars from the main brands Renault and Geely, as well as Nissan and Mitsubishi, Renault allies, and Geely-owned Volvo and Proton.
Additionally, Renault plans to use the joint venture for powertrains for light commercial vehicles, potentially with Italian supplier Punch Torino and for hybrid batteries.
Nissan Qashqai E-Power 2022
According to Renault, the joint venture will have a portfolio of powertrains and account for 80% of the global internal combustion and hybrid engine market. With that scale, the goal would be Toyotaincluding long-term dominating hybrid sales. That’s an area where Geely and Renault (along with alliance partners Nissan and Mitsubishi) have yet to find a way to address. Nissan’s e-Power hybrid vehicle for the United States, once considered a new signature technology for the brand, has long been delayed for US products, although they are available in a number of other markets.
Even when it comes to launching all-electric vehicles, hybrids are still Toyota’s focus. The automaker has chosen to showcase its hybrid technology in Prius 2023while holding bZ4X as a limited and unattractive medium. And it’s geared towards many plug-in hybrid is more fuel efficient Future.
