- Horse Powertrain Limited will produce ICEs, transmissions, hybrid systems, and batteries.
- Renault, Geely, Volvo, Proton, Nissan, and Mitsubishi will use engines sourced from the venture.
- The new company is owned 50-50 percent by Renault and Geely and is headquartered in London.
Renault and Geely have finalized their internal combustion engine joint venture. The new company, dubbed Horse Powertrain Limited, will be 50-50 owned by the two car manufacturers and plans to produce 5 million engines annually.
The two automakers formally agreed to create the new venture on July 11, 2023 but it’s taken roughly 11 months for all the relevant authorities to approve the formation of the new company. Horse Powertrain Limited is headquartered in London. Renault and Geely believe a combination of powertrain technologies is necessary to successfully decarbonize the world. They expect more than half of all vehicles produced to still rely on ICEs by 2040.
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Horse Powertrain Limited will design, develop, produce, and sell all hybrid and combustion powertrain solutions and systems, including engines, transmissions, hybrid systems, and batteries. The company has received intellectual property from Renault and Geely and will operate autonomously to develop future powertrain technologies. It will also investigate the use of green methanol, ethanol, and hydrogen.
“Today marks an important step in meeting the greatest challenges facing the automotive industry: the decarbonization of road transport,” Renault chief executive Luca de Meo said. “Partnering with a leading company like Geely to create a new player with the capability and expertise to develop ultra-low emission internal combustion engines and high economy hybrid technologies is key for the future. Through Horse Powertrain, Renault Group can achieve worldwide leadership and scale in a sector representing more than 80% of its business. Together we will rise to meet the decarbonization challenge with innovation at the forefront of our operations.”
Horse will supply brands including Renault, Geely, Volvo, Proton, Nissan, and Mitsubishi. It operates 17 plants around the world, five research and development centers, employees approximately 15,000 people, and is expected to generate nearly €15 billion ($16.2 billion) in annual revenue.
“For the industry to reach net zero emissions in the next decades, global synergies, multiple technologies, and sharing of expertise, are crucial,” added Geely chairman Eric Li. “That is why we are pleased that our partnership with Renault Group is reaching commercial reality today.”
