As the world’s electric vehicle trend continues to grow, global automakers are contributing to developing innovative clean energy and improved performance technologies. They are forming partnerships to share billions of dollars in development costs for electric vehicles and more efficient gasoline engines. In view of this, French manufacturer Renault and Chinese company Geely have announced a joint venture to develop gasoline and hybrid powertrains.
Renault and Geely Powertrain Joint Venture:
As per the details, the two companies Renault and Geely have agreed to form a joint venture and signed a non-binding framework agreement dedicated to developing, manufacturing, and supplying internal combustion, hybrid and plug-in hybrid powertrains. Under the framework of the agreement, each company has will hold an equal share of 50% of the new joint venture.
According to the companies, the joint venture will include 17 plants with a combined production capacity of 5 million internal-combustion, hybrid, and plug-in hybrid powertrains and transmissions each year. The venture will establish 5 R&D centers spread across three continents, and around 19,000 workers. They did not specify a price but did state that each partner would own 50% of the business.
When will Gasoline and Hybrid Powertrains Formed?
The framework agreement has expected to finalized in 2023, as a result, a new stand-alone company will offer powertrains to Renault and Geely as well as brands that linked or owned by these companies such as Nissan, Mitsubishi, Volvo Cars, Renault, Dacia, Geely Auto, Lynk & Co., Proton, etc. The venture also said they may later supply to third-party brands. According to Renault, by 2040, internal combustion and hybrid vehicles will account for up to 50% of passenger car sales globally
Geely Holding Group Chairman stated that with the help of the Renault-Geely agreement, a world leader in hybrid technologies will be formed to provide highly effective cutting-edge powertrain and electrical solutions to automakers all over the world. He added ICE and hybrid engine technologies will remain an essential component of the global automotive supply chain for decades to come.
