French carmaker Renault and Chinese company Geely have announced a joint venture to develop hybrid and combustion engines. This partnership aims to boost their competitiveness in the auto industry.
This 50-50 joint venture is a key part of Renault’s strategy to stay competitive by forming partnerships to cut costs and enter new markets. For Geely, this deal is another step in expanding beyond China. Geely has previously partnered with Mercedes-Benz to develop hybrid engines and holds a stake in the German automaker.
In their joint statement, Renault and Geely emphasized the importance of using various powertrain technologies to achieve decarbonization, noting that more than half of vehicles will still use combustion engines by 2040.
The new venture, called HORSE Powertrain, will be based in London and will supply engines to both Renault and Geely brands, as well as other manufacturers. The venture aims to generate about 15 billion euros ($16.2 billion) in annual revenue and produce around five million powertrain units each year. Matias Giannini, a former global sales executive for Vitesco Technologies, will be the CEO, while Geely Holding CEO Daniel Li will be the chairman.
The venture has been anticipated since early this year, but regulatory approval in China faced delays.
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