Renault and Geely are completing their joint venture on combustion and hybrid engines towards the end of this month, after the agreement was first signed in mid-2023. The 50-50 joint venture is helping Renault cut costs, access new markets and strengthen its internal combustion engines business, which still accounts for most of its revenue. Approximately 93 percent of Renault’s new vehicle sales in 2023 are thought to come from combustion and hybrid models.
The partnership between Renault and Geely has come to an end
The joint venture produces engines for Renault and Geely brands, including Volvo, Proton, Nissan, Mitsubishi and Punch Torino. The company is also expected to supply some third-party manufacturers, including other auto brands and other industrial sectors, Reuters reported. Saudi Aramco, the world’s largest oil producer, first expressed interest in participating early last year and is rumored to announce plans to invest in the joint venture soon.
Renault’s side of the business is called ‘The Horse’ and is headquartered in Madrid, Spain, where 9,000 former Renault Group employees currently work across 8 production sites with a production capacity of 3.2 million units per year. The company also operates in Argentina, Brazil, Chile, Portugal, Romania, Spain and Turkey and operates 3 research and development centres.