By Redação AutoIndústria| Translated by Jorge Meditsch
Geely and Renault groups united to create an independent company to develop, produce and supply high-efficiency hybrid and internal combustion engines. According to the cooperation agreement, each partner will own a 50% share of the new company.
The joint venture will supply engines for manufacturers belonging to its groups, such as Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, and Proton, besides the French group alliance brands Nissan and Mitsubishi. Nonetheless, in the future other manufacturers could benefit from the company’s engine technologies.
“The Renault Group is accelerating its Renaulution transformation program to create value in the whole automotive industry’s chain”, resumed in a note Luca de Meo, CEO of the Renault Group. “We will have conditions to provide spearhead engines and electrified solutions to diverse automobile manufacturers worldwide, expanding the market potential of this low-emission technology.”
According to the announcement, the new company will have 17 engine plants on three continents, about 19 thousand employees and a yearly capacity to produce 5 million internal combustion and hybrid engines. The manufacturers foresee supplying 130 countries and regions, covering 80% of the global combustion engine market.
“The deal signed today with the Renault Group will enable creating the hybrid technologies world leading company to provide high-efficiency energy solutions for automobile manufacturers worldwide”, completed Eric Li, president of the Geely Holding Group’s board.
The project will be formalized in 2023 and announces the possibility of attracting other partners.
