the frame agreement blazoned in November 2022, Geely Holding Group( Geely Holding), Geely Automobile effects Limited( Geely AutoHK.0175)( inclusively appertained to above as “ Geely ”) and Renault Group have inked moment a list50/50 common adventure agreements to launch a new powertrain technology company that aims to come the global leader in developing, manufacturing, and supplying best- in- class mongrel powertrains and largely effective ICE powertrain.
Aramco, which inked a letter of intent with Renault and Geely on March 2, 2023, is assessing a strategic investment in this new powertrain technology company. Aramco’s investment would support the growth of the company and contribute to crucial exploration and development across synthetic energy results and coming-word hydrogen technologies. Synthetic energies including fuels and hydrogen are part of the result of decarbonisation in the automotive assiduity, including for the ICE vehicles on the road moment.
The common adventure will be concertedly led by Renault Group and Geely, with equal board members to formulate and execute strategies and set the direction for the common adventure. The original association will secure the durability of the business with two functional centres in charge of the separate operations Madrid for Renault Group and Hangzhou Bay for Geely. An administrative platoon will be grounded in the headquarters of the new company, which is intended to be established in the UK, to consolidate operations, make solidarity, and define unborn plans.
Renault Group and Geely will transfer Intellectual Property to the functional centres enabling them to be completely independent in developing unborn powertrain technologies able of addressing all request prospects. The new common adventure’s reciprocal product portfolio and indigenous footmark could offer results for 80 of the global ICE and cold-blooded request. At launch, the new company is anticipated to supply multiple artificial guests including Renault Group, Geely Auto, Volvo buses, Proton, Nissan, Mitsubishi Motors Company, and PUNCH Torino. In the future, the common adventure will be able of furnishing end-to-end results in powertrain technologies to third-party auto brands and will drink mates to further strengthen the value chain.
Subject to applicable laws and regulations, Geely Auto and Renault will enter into a long-term procurement agreement from the common adventure for ICE, mongrel and plug-in mongrel powertrains( machine and transmissions) for passenger vehicles. In addition, Renault will land powertrains from the common adventure for light marketable vehicles as well as the development of mongrel batteries.
Luca de Meo, CEO of Renault Group
“ Facing moment’s automotive challenges, no bone
can claim to have all the results, alone. Coming up with advanced inventions requires combining moxie and means. When it comes to the global race for decarbonizing road transport, there’s no time to lose, and it’ll not be business as usual. moment, we’re proud to join forces with a great company like Geely to set up a new player, up to the challenge, suitable to disrupt the game and open the way for ultra-low emigrations ICE technologies. I want to thank Eric Li Shufu for his trust we’re now ready to move forward! ”
Eric Li, Geely Holding Group Chairman, said
“ We’re pleased to be embarking on this trip to come a global leader in mongrel technologies, furnishing low- emigration results for automakers around the world. We’re looking forward to working with Luca de Meo and his Renault platoon. With this agreement, we reiterate our commitment to using our group-wide technological moxie and brand portfolio to colonist the trip to lesser sustainability and value creation which will lead to better consumer gests. ”
Renault Group and Geely inked a common adventure agreement, with each reality holding 50 stake in the new company, which aims to come the leader in coming-generation mongrel and largely effective powertrain results to meet worldwide demand for the times to come.
As blazoned on March 2, 2023, following the letter of intent inked between Aramco, Geely and Renault Group, Aramco is assessing a strategic investment in this new powertrain technology company.
The new company will include 17 machine shops and 5 R&D centres on 3 mainlands with 19,000 workers in a full fledge effective association strategically structured to give PWT results for multiple OEMs and with a seductive business model to drink new mates.
The share capital power of the common adventure company will be controlled by both Renault Group and Geely.
The common adventure company aims to have a periodic product capacity of over five million internal combustion, mongrel and plug-in mongrel machines and transmissions per time. It’ll supply multiple brands worldwide with a complete range of stylish- in-class powertrains.
The completion of the sale is anticipated to take place in H2 2023 and remains subject to the conditions typically applicable to this type of sale, in particular the previous blessing of the applicable antitrust and foreign direct investment authorities.
