A non-binding framework agreement was signed by Geely Holding Group and Renault Group to establish a new worldwide leader in the development, production, and supply of best-in-class hybrid powertrains and extremely efficient ICE powertrains.
According to the framework agreement, Geely and Renault Group will each own 50 percent of the new company’s shares.
In addition to creating next-generation hybrid propulsion systems and researching carbon-free and low-emission technologies out of five global R&D centers, the new firm will be a stand-alone global supplier of propulsion system solutions. At its debut, the new business is anticipated to serve a wide range of industrial clients, including Nissan, Mitsubishi Motors Corporation, Proton, Lynk & Co., Geely Auto, Volvo Cars, Renault, Dacia, and Lynk & Co. The alliance may eventually provide powertrain innovations to independent automakers.
It is intended for the new firm to run 17 powertrain facilities over 3 continents, employing a total of about 19,000 workers. It will be able to provide more than 130 nations and regions with more than 5 million internal combustion, hybrid, and plug-in hybrid engines and transmissions annually. The united product range and regional reach of the new company may be able to provide solutions for 80% of the worldwide ICE market.