Wednesday, December 11, 2024
Advertisement
  1. You Are At:
  2. News
  3. Auto
  4. Geely and Renault launch joint venture focused on hybrid and combustion powertrains

Geely and Renault launch joint venture focused on hybrid and combustion powertrains

Renault and Chinese partner Geely have announced a highly anticipated joint venture focused on developing combustion and hybrid engines. This initiative aims to enhance the competitiveness of their legacy auto business by creating more efficient gasoline engines and hybrid systems.

Edited By: Saumya Nigam @snigam04 New Delhi Published : Jun 03, 2024 13:11 IST, Updated : Jun 03, 2024 13:11 IST
Renault
Image Source : REUTERS Renault

Renault,  a French automaker and Chinese partner Geely announced a highly anticipated joint venture which will develop combustion and hybrid engines, with a vision to improve the competitiveness of their legacy auto business.

The venture further aims at developing more efficient gasoline engines and hybrid systems, as rival automakers ramp up investment in low-emission powertrains in response to slowing electric vehicle sales.

Toyota Motor has showcased the next-generation engine which could be used in hybrids and other lower-emission vehicles, and China's BYD also announced a new hybrid technology with lower fuel consumption.

In a joint statement, Renault and Geely said, "A combination of various powertrain technologies is necessary ... to achieve a successful decarbonization in a world where more than half of vehicles produced are expected to still rely on combustion engines by 2040."

Core element of Renault's strategy 

The 50-50 joint venture is a core element of Renault's strategy to stay in the race against larger competitors by signing multiple partnerships to reduce costs and access new markets.

By carving out its internal combustion engine business, Renault plans to focus on EVs, part of the French firm's broad restructuring that also involves overhauling its decades-old alliance with Nissan Motor.

For Geely, the deal extends its pattern of building partnerships to expand beyond China. Geely previously announced a hybrid gasoline engine development deal with Mercedes-Benz and holds a stake in the German automaker.

The venture, dubbed HORSE Powertrain, will be headquartered in London and will supply both the groups' brands as well as third-party manufacturers.

The business expects to reach about 15 billion euros ($16.2 billion) in annual revenue and production of about five million powertrain units a year, the automakers said.

Matias Giannini would be the venture's CEO and Geely Holding CEO Daniel Li would be chairman of the board.

Giannini was a former global sales executive for Vitesco Technologies, a powertrain business spun off from automotive supplier Continental.

The venture has been expected since the beginning of the year but regulatory approval in China was delayed at least three times, sources have told Reuters.

ALSO READ: Tesla reclaims lead in electric vehicle sales despite year-on-year dip

 

Reported from Reuters

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Auto

Advertisement
Advertisement
Advertisement
Advertisement