Geely and Renault Group sign agreement to create new powertrain company
Don't be surprised if you'll find Nissan, Mitsubishi and Geely vehicles sharing the same power outputs in their spec sheets in the future.
Geely and Renault Group have signed a framework agreement to create a new powertrain technology company, which aims to develop, produce and supply advanced internal combustion engines (ICE) and hybrid systems.
Under the agreement, Geely and Renault Group will have equal shares in the new company, which will serve as the standalone global supplier of advanced powertrains for brands like Nissan, Mitsubishi, Renault, Geely, Dacia, Volvo, Lynk & Co and Proton.
When it becomes fully operational, the new company is set to have 17 powertrain plants, plus 5 research and development (R&D) across 3 continents. The powertrain centers aim to supply over 5 million engines and transmissions per year to over 130 countries and regions.
In addition, the agreement also states that the new company could also be open to offering powertrains to vehicle brands that are not part of the Geely and Renault group, making the new company capable of offering solutions for 80% of the global ICE market.
Renault Group says further details of the new company are expected to be announced in the coming months, including the name of the entity.
With this partnership, Geely and Renault Group believes ICEs and hybrids will remain in the automotive supply chain for decades to come.
With numerous countries and manufacturers announcing to phase out gas-powered engines in the future, is Geely and Renault Group playing their cards right in continuing to develop ICEs and hybrids? Let us know in the comments.