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According to media reports, sources revealed that Geely and France's Renault are expected to finalize a joint venture between internal combustion engines and hybrid engines by the end of February. Of these, Renault's Horse and Geely are each likely to own 40 per cent of the joint venture, with the remaining 20 per cent owned by Saudi Aramco. The joint venture aims to have an annual turnover of 15 billion euros (116.55 billion yuan) and employs 19000 people in 22 locations around the world, mainly in Spain, Romania, Turkey, South America and China, the source said.

Earlier, Renault spun off the electric vehicle and fuel vehicle business, in which the fuel vehicle business was named Horse, headquartered outside France, and the electric vehicle business was named Ampere headquartered in France. In November 2022, Geely Holdings announced that it had signed a non-binding framework agreement with Geely Automobile and Renault to establish a new company. develop, manufacture and supply advanced hybrid and efficient fuel assemblies around the world. According to the plan, the new company has an annual production capacity of 5 million sets, including fuel engines, hybrid engines, plug-in hybrid engines and gearboxes, which will be supplied to more than 130 countries and regions. In March 2023, Saudi Aramco intends to acquire a minority stake in the joint venture in the form of cash investment.

In July 2023, Geely Holdings Group and Renault Group jointly announced that Geely and Renault signed a joint venture agreement, each holding 50% of the joint venture company. the new company is committed to becoming the leader in the next generation of efficient and energy-efficient hybrid system solutions, developing, manufacturing and supplying advanced hybrid assemblies and efficient fuel assemblies worldwide. It was announced at that time that the new company would be jointly led by Geely and Renault, with 50-50 board members to jointly formulate and implement the company's development strategy. At the initial stage of operation, the new company will ensure business continuity through two operation centers, including Renault Operations Center in Madrid and Geely Operations Center in Hangzhou Bay. In addition, the new company will be headquartered in the UK and will set up a management team to integrate operations, seek synergies and determine future development plans. The new company's products can cover 80% of the global fuel and hybrid vehicle market application needs and serve a number of brands, including Renault, Geely, Volvo, Proton, Nissan, Mitsubishi and PUNCH Torino Powertrain.

It is understood that Geely and Renault will carry out long-term procurement cooperation with the new company, including passenger car engines and gearboxes, including fuel power and hybrid powers. at the same time, the new company will provide hybrid battery development business for Renault light commercial vehicles. In the future, the new company will have five R & D centers and 17 factories in Europe, Asia and South America, and will provide a full range of powertrain solutions for more third-party car brands.

Generally speaking, the cooperation between Renault and Geely to form an internal combustion engine joint venture is a win-win situation for both sides. For Renault, this is another rebirth of its cocoon in the Chinese market, which can also accelerate the development of electric vehicles to a certain extent. For Geely, as the head car company of Chinese brands, Geely's electrification has lagged far behind the leading level of the industry, and this cooperation can also accelerate the electrification technology.

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