Geely Will Include Eight Chinese Powertrain Plants In Renault JV - Sources

According to two sources close to the matter, Geely will include eight powertrain plants in China and one in Sweden in its future combustion engine joint venture with Renault and Saudi Aramco. The joint venture, codenamed "Horse" by Renault and "Rubik" by China's Geely, was formed in November of last year to develop more efficient gasoline engines and hybrid systems at a time when the auto industry is focused on the capital-intensive transition to battery electric vehicles.

Renault and Geely want the JV to be a leading combustion engine and hybrid engine supplier to the automotive industry by the end of 2023, with a workforce of 19,000 and annual revenue of 15 billion euros (RM72bil). Renault previously stated that the Horse project will include 17 plants, including eight from the French automaker in Latin America, Europe, and Turkey, and nine from Geely.

According to two sources, eight of the nine plants coming from Geely and Aurobay. The combustion engine unit created by Volvo Cars and Geely in 2021, which is now fully owned by Geely; are in China, with one in Skovde, Sweden.

The future JV will also have two Geely-Aurobay R&D centers, one in Hangzhou Bay, China, and the other in Gothenburg, Sweden. Renault will contribute three R&D centres in Latin America and Europe to the JV. "It demonstrates that the footprint is very complementary and globally balanced," one source said. Geely Europe's spokesman declined to comment.

Geely will bring all of its engine and transmission plants, but not its electric powertrains, to the JV. Renault's EV technology will be kept separate from Horse and will form the foundation of the company's future "Ampere" unit. Renault's strategy for re-entering the electrification race includes a possible public listing for Ampère later this year.

According to Geely and Renault, the JV will have an annual capacity of more than five million internal combustion, hybrid, and plug-in hybrid engines and transmissions. Saudi Aramaco will contribute expertise in e-fuels and hydrogen.