Geely and Renault have signed a joint venture agreement that will see each entity hold a 50% stake in a new powertrain technology company. According to an official release, the new company “aims to become the global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient ICE powertrains.”
The new powertrain technology company will have 19,000 employees and will operate with 17 engines plants as well as five R&D centres in three continents. It will also have two operational centres in charge of their respective operations: Madrid for Renault and Hangzhou for Geely.
The joint venture company is targeting an annual production capacity of up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year. At launch, it is expected to supply various automotive firms including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi and Punch Torino. In the future, the joint venture will provide powertrain technologies to third-party car brands and will welcome partners to further strengthen the value chain.
“With this agreement, we reiterate our commitment to leveraging our group-wide technological expertise and brand portfolio to pioneer the journey to greater sustainability and value creation which will lead to better consumer experiences,” he added.