China‘s Geely Automobile Holdings and French car maker Renault SA have entered into a joint venture (JV) agreement to establish a company dedicated to the manufacturing and supply of hybrid powertrain engines.
This collaboration aims to position the JV as a leading supplier of combustion engine and hybrid engine technologies for the automotive industry by the end of 2023, generating an estimated annual revenue of 15 billion euros (USD 16.3 billion) with a workforce of 19,000 employees.
Under the terms of the agreement, Geely‘s subsidiary Aurobay Holding will hold a 33% stake in the joint venture, while Renault will have a 50% ownership. The remaining share will be owned by GHPT Ltd, a subsidiary of Geely Holding.
Both Geely and Renault have been actively seeking the participation of Saudi Aramco, the Saudi Arabian national petroleum and natural gas company, as an investor and technology partner for the development and supply of gasoline engines and hybrid technologies.
Renault confirmed that Saudi Aramco is currently evaluating a strategic investment in the new powertrain technology company. The transaction is anticipated to be completed in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
This joint venture signifies a significant step forward in the collaboration between Geely and Renault, leveraging their respective expertise to drive advancements in hybrid powertrain technology and strengthen their positions in the global automotive market.
