The Renault Group and Geely have announced the creation of a joint venture to produce combustion engines. The new company, HORSE Powertrain Limited, will design, develop, produce, and sell all cutting-edge hybrid and combustion propulsion solutions and systems, including engines, transmissions, hybrid systems, and batteries.
“Supported by the transfer of intellectual property from the Renault Group and Geely, HORSE Powertrain Limited is now fully autonomous in developing future propulsion technologies capable of meeting all market expectations, particularly in the field of alternative fuels such as green methanol, ethanol, and hydrogen. The complementary product portfolio and regional presence of the joint venture could provide solutions for 80% of the growing global market for hybrid and combustion powertrains,” adds the joint statement released by Renault.
The new company starts with access to the resources of both groups, namely 17 factories worldwide, five research and development centers, and around 19,000 employees.
In addition, the new company already has a customer portfolio that includes the Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, and Mitsubishi Motors Company. “The company is ready to engage with customers and partners worldwide, to support them with end-to-end cutting-edge powertrain technologies and will welcome partners to further strengthen the value chain,” the statement adds.
In this way, HORSE Powertrain Limited expects to achieve around €15 billion in annual revenue and a production of about 5 million propulsion units per year.
“Partnering with a leading company like Geely to create a player with the capacity and experience to develop internal combustion engines with ultra-low emissions and high-efficiency hybrid technologies is crucial for the future. Through HORSE Powertrain, the Renault Group can achieve global leadership and scale in a sector that represents more than 80% of its activity. Together, we will tackle the decarbonization challenge with innovation at the forefront of our activities”, said Luca de Meo, CEO of the Renault Group.
