Renault and Geely will soon finalize their joint venture for combustion and hybrid engines towards the end of this month after the deal was first struck in mid-2023.
The 50-50 joint venture will allow Renault to cut costs, access new markets, and help it bolster its business of ICE models which still account for most of its income. Approximately 93% of Renault’s new vehicle sales in 2023 are thought to have come from its combustion and hybrid models.
The joint venture will produce engines for brands from both Renault and Geely, including the likes of Volvo, Proton, Nissan, Mitsubishi, and Punch Torino. it is also expected to supply some third-party manufacturers, including other car brands and “other industry sectors,” Reuters reports. The world’s largest oil producer, Saudi Aramco, first expressed interest in getting involved early last year and is tipped to soon announce a plan to invest in the joint venture.
Read: Renault And Geely Formalize Joint Powertrain Venture To Develop Hybrids And ICEs
Renault’s side of the business has been dubbed ‘Horse’ and is headquartered in Madrid, Spain with 9,000 former Renault Group employees already working in 8 manufacturing sites with a production capacity of 3.2 million units per year. The company also has a presence in Argentina, Brazil, Chile, Portugal, Romania, Spain, and Turkey, and operates 3 research and development centers.
“In 2040, combustion and hybrid vehicles will still account for more than 50% of global sales,” Horse chief executive Patrice Haetell proclaimed in mid-2023. “HORSE will lead the way on this market with its best-in-class low-emission solutions and technological expertise. It is a unique experience and a great source of collective pride to contribute to the creation of a company on this scale. All the HORSE teams around the world are ready to make it an international reference in terms of combustion engine and hybrid technologies.”
