Geely and Renault Group Sign Framework Agreement to Create Leading Powertrain Technology Company
New international firm to develop, produce and provide superior hybrid and low-emission powertrains
- Framework settlement envisages Geely and Renault Group holding 50% stakes in new firm
- New partnership goals to grow to be chief in next-generation hybrid and extremely environment friendly powertrain options to fulfill worldwide demand for years to come back
- Initiative varieties a part of ‘Renaulution’ transformation at Renault Group and Geely’s transition to clever e-mobility companies
- New firm will provide a number of manufacturers worldwide with full vary of best-in-class powertrains together with electrified options
- On completion, the brand new firm will comprise 17 powertrain crops and 5 R&D facilities in 3 continents with round 19,000 workers, supplying 130 international locations
- New group construction, combining a strategic footprint and enticing business mannequin, will welcome new companions sooner or later
8th November 2022, Hangzhou, HongKong SAR, China and Boulogne-Billancourt, France – Geely Holding Group (Geely Holding), Geely Automobile Holdings Limited (Geely Auto HK.0175) (collectively referred to above as “Geely”) and Renault Group have signed a non-binding framework settlement to create a brand new international chief to develop, manufacture and provide best-in-class hybrid powertrains and extremely environment friendly ICE powertrains.
Under the framework settlement, Geely and Renault Group will maintain respective 50-50 fairness stakes within the new firm.
The new firm shall be a standalone international provider of propulsion system options, producing subsequent era hybrid propulsion techniques, and growing carbon free and low-emission applied sciences from 5 international R&D centres. At launch, the brand new firm is predicted to produce a number of industrial prospects together with Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, and additionally Nissan and Mitsubishi Motors Company. In future, the partnership may additionally supply powertrain applied sciences to third-party automotive manufacturers.
The new firm is deliberate to function 17 powertrain crops in 3 continents, using round 19,000 folks in complete. It may have a mixed capability of over 5 million inside combustion, hybrid and plug-in hybrid engines and transmissions per 12 months, supplying over 130 international locations and areas. The new firm’s joint product portfolio and regional footprint may supply options for 80% of the worldwide ICE market.
News of this settlement has coincided with a Renault Group Capital Market Day in Paris, at which the Group has outlined a variety of initiatives to speed-up its transformation and shared its mid-term monetary outlook.
Luca de Meo, CEO Renault Group: “As Renault Group accelerates with its 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.”
Eric Li, Geely Holding Group Chairman, mentioned: “Today’s agreement with Renault Group will enable the creation of a global leader in hybrid technologies to provide highly efficient advanced solutions for automakers around the world. We are looking forward to working together with Luca de Meo and his Renault team to make this partnership a reality. This agreement builds on our commitment to leverage our group wide technological expertise and brand portfolio to continue our pioneering journey in sustainability and value creation that leads to consumer excellence.”
The new firm will welcome companions and shareholders attracted by the chance to contribute to industry-leading “cradle-to-grave” low and zero emission eco-systems worldwide.
This framework settlement is predicted to result in formal mixture in 2023. Further particulars of the brand new entity are anticipated to be introduced over coming months.
About Zhejiang Geely Holding Group
Zhejiang Geely Holding Group (Geely Holding) is a worldwide automotive group that owns a number of well-known worldwide automotive manufacturers, with operations spanning the automotive worth chain, from analysis, improvement and design to manufacturing, gross sales and servicing.
Founded in 1986 by Eric Li, the corporate’s Chairman, within the metropolis of Taizhou in China’s Zhejiang province, Geely Holding launched its automotive business in 1997 and is now headquartered in Hangzhou, China. Today, Geely Holding operates a variety of manufacturers together with Geely Auto, Lynk & Co, ZEEKR, Geometry, Volvo Cars, Polestar, Lotus, London Electric Vehicle Company, Farizon Auto, and Cao Cao Mobility.
Geely Holding bought over 2.2 million autos in 2021, with Volvo Cars gross sales reaching 698,693 items globally and Geely Auto Group’s Hong Kong listed entity reporting gross sales reaching 1,328,029 items.
Geely Holding employs over 120,000 folks globally, and has been listed within the Fortune Global 500 for the previous ten years.
For extra info relating to Zhejiang Geely Holding Group please consult with the official web site at www.zgh.com
About Geely Automobile Holdings Limited
Geely Automobile Holdings Limited (the “Company” and its subsidiaries, collectively the “Group”) (SEHK inventory code: 175) is an automobile producer, specializing in improvement, manufacturing and gross sales of passenger autos.
The Group sells most of its merchandise within the China market and has additionally expanded its gross sales via export to different international locations prior to now few years. The Group has manufacturing bases in varied components of the mainland China, with greater than 40,000 workers.
The Company is listed on the primary board of The Stock Exchange of Hong Kong Limited (“SEHK”) and is a constituent of the Hang Seng Index since 2017. The controlling shareholder of the Company is Zhejiang Geely Holding Group.
About Renault Group
Renault Group is on the forefront of a mobility that’s reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its distinctive experience in electrification, Renault Group contains 4 complementary manufacturers – Renault, Dacia, Alpine and Mobilize – providing sustainable and progressive mobility options to its prospects. Established in additional than 130 international locations, the Group has bought 2.7 million autos in 2021. It employs practically 111,000 individuals who embody its Purpose day by day, in order that mobility brings folks nearer. Ready to pursue challenges each on the street and in competitors, Renault Group is dedicated to an bold transformation that can generate worth. This is centred on the event of latest applied sciences and companies, and a brand new vary of much more aggressive, balanced and electrified autos. In line with environmental challenges, the Group’s ambition is to realize carbon neutrality in Europe by 2040. https://www.renaultgroup.com/en/
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