Geely and Renault Group have signed an agreement to create a new company that will become a world leader in the development, production and supply of hybrid powertrains and high-performance internal combustion engines. Both companies will each own 50 per cent stakes in the new company. The purpose of the joint venture is to develop and manufacture next-generation hybrid powertrains, as well as carbon-free and low-emission technologies, at five global research and development centres.

Luca de Meo, CEO, Renault Group said, “As Renault Group accelerates with its Renaulution transformation to capture value on the entire new automotive value chain, we are pleased to have agreed plans for an ambitious partnership with Geely to keep developing the ICE and hybrid engine technologies that will remain a critical part of the automotive supply chain for decades to come. We’ll be able to offer best-in-class powertrain and electrified solutions to multiple OEM brands worldwide, unleashing the market potential for this low-emission technology.”

The new company already has several major customers, including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, as well as Nissan and Mitsubishi Motors Company. In the future, the company will also be able to offer powertrain technologies to third-party automotive brands.

The JV will operate 17 powertrain factories on three continents and employ about 19,000 people. The company’s total production capacity will be over five million internal combustion engines, hybrid and plug-in hybrid powertrains and transmissions per year. These products will be supplied to more than 130 countries around the world. The company plans to offer solutions for 80 per cent of the global ICE market.