Agreement between Geely and Renault Group to create leading powertrain technology

Gruppo Renault JMCG

The new global company created by the agreement between Geely and Renault Group is aimed to develop, produce and supply advanced hybrid and low-emission powertrains.

Under the framework agreement, Geely and Renault Group will hold respective 50-50 equity stakes in the new company, that will be a standalone global supplier of propulsion system solutions, producing next generation hybrid propulsion systems, and developing carbon free and low-emission technologies from five global R&D centres.

At launch, the new company is expected to supply multiple industrial customers including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, and also Nissan and Mitsubishi Motors Company. In future, the partnership could also offer powertrain technologies to third-party car brands.

The new company is planned to operate 17 powertrain plants in 3 continents, employing around 19,000 people in total. It will have a combined capacity of over 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions. The new company’s joint product portfolio and regional footprint could offer solutions for 80% of the global ICE market.

The new company will welcome partners and shareholders attracted by the opportunity to contribute to industry-leading “cradle-to-grave” low and zero emission eco-systems worldwide.

This framework agreement is expected to lead to formal combination in 2023.

Source: Renault Group

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