The new company will have 17 factories on 3 continents.
According to Autonews of the Day citing the Geely press agency, the agreement between the Chinese automaker and Renault Group will create a new company that will be a global leader in the production, supply, and development of hybrid powertrains. Each of the 50% stakes will be held by Renault Group and Geely.
The company will need to create and produce next-generation hybrid engines, as well low-emission and carbon-free technologies at five global research centres. Numerous major customers have already signed up for the new company, including Renault, Dacia and Geely Auto, Volvo Cars Lynk & Co., Proton, Nissan, Mitsubishi Motors Company, and Nissan. The company will be able in the future to offer powertrain technology to third-party auto brands.
The company will have 17 powertrain factories across three continents, and approximately 19,000 employees. The company will produce more than five million hybrid, plug-in and internal combustion engines and transmissions annually. These products will be shipped to more than 130 countries. The company intends to supply solutions for 80% global ICE markets.
Autonews of the Day claims that the agreement will lead to a formal fusion of the companies’ assets by 2023.
It was reported in summer that Renault engines were coming to Geely cars.