Renault and Geely join forces on combustion engines

In the wake of slowing global EV sales, the Renault Group and Geely Auto will join forces to design, develop and produce next-generation internal combustion engines.

Under a new company known as Horse Powertrain, the 50/50 joint-venture will develop petrol, diesel and hybrid powertrains, the latter including mild-hybrid, series/parallel hybrid and long-range plug-in hybrid that are now growing in popularity in China.

As well as traditional combustion engines, Horse Powertrain will develop new methanol, ethanol and hydrogen technologies.

The powertrain tech is also earmarked for Volvo and Proton – two brands in which Geely has a large stake – along with Renault partners Nissan and Mitsubishi.

By pooling its resources, Horse Powertrain will have immediate access to 17 global plants, five R&D centres and more than 19,000 employees.

Once up and running, the new company is expected to produce more than five million powertrains a year, bringing in annual revenue of €15 billion ($A25b).

The senior leadership team includes Geely CEO Danial Li, Dacia CEO Denis Le Vot and Renault chief technology officer Gille Le Borgne.

“Partnering with a leading company like Geely to create a new player with the capability and expertise to develop ultra-low-emission internal combustion engines and high-economy hybrid technologies is key for the future,” said Renault CEO Luca de Meo.

The Geely/Renault deal has emerged just days after Toyota, Mazda and Subaru announced they were joining forces to develop their next-generation combustion engines.

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au