Renault and Geely join forces to create new engine and hybrid powertrain company
Renault has also announced a new electric division called Ampere
The Renault Group and Chinese automotive giant Geely are set to create a new company making engines and hybrid powertrains.
Announced today as part of Renault’s Capital Market Day, the yet unnamed firm aims to ‘develop, manufacture and supply best-in-class hybrid and highly efficient ICE [internal combustion engine] powertrains ’.
Geely – owners of firms like Volvo and Lotus – and the Renault Group will hold respective 50-50 stakes in the company, which will be a standalone supplier of powertrains.
At its launch, it will supply to firms within the wider group of the two companies, including Renault, Dacia, Volvo Nissan and Mitsubishi. There is also the possibility of offering its powertrains to ‘third-party car brands’, the partnership says.
When up and running, Geely and Renault say there will be 17 powertrain plants spread across three continents. It says it will employ ‘around 19,000 people’ – including at three research and development hubs – and have capacity to produce over five million internal combustion, hybrid and plug-in hybrid engines and transmissions each year.
Luca de Meo, CEO of the Renault Group: “As we accelerate our 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.”
Renault has also today announced it will split its operations into two; the hybrid and engine division with Geely and a new electric vehicle unit called Ampere, which aims to produce a million EVs by 2031. Based in France, this division will produce important upcoming electric models such as the new Renault 4 and 5.
The French firm has also announced today at its Capital Market Day that it will further its collaboration with Google to create a ‘software defined vehicle’, building on the existing relationship to supply the French car company with its Android-based infotainment system and Google Cloud technology.
