Renault and Geely join forces for all new ICE and hybrid powertrain production
Another huge collaboration will see all powertrain development and production between the two companies merge into one new entity
Renault and Geely have announced a new joint venture to design, development and build combustion and hybrid powertrains. The new entity called ‘HORSE Powertrain Limited’, will collate all of the brands’ powertrain knowhow and manufacturing capacity from across the world, driving down costs and spreading the load as car companies race to retain powertrain diversity in the wake of slowing EV take-up.
Both parties will hold a 50 per cent share of the company, which will supply engines for Renault Group, Geely Auto, Volvo Cars, Nissan, Mitsubishi and more, through a total of 17 engine plants, to customers across 130 different countries.
The new joint entity will handle the design, development and production of combustion engine, transmissions, hybrid systems and batteries, offering a range of different solutions from simple mild-hybrid combinations right up to ‘long-range’ plug-in hybrids which are increasingly popular in the Chinese market.
Revenue is expected to be as high as €15 billion per annum, with production capacity for up to 5 million units per year across both the Renault alliance and Geely group.
Commenting on the new collaboration, CEO Renault Group 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.”
This type of collaboration for development of new combustion powertrains isn’t just limited to Renault and Geely, with Toyota, Subaru and Mazda also recently announcing its own new collaboration in the design of clean, small and hybrid-focused combustion engines.
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