Renault SA and Geely announced that they will be entering a joint venture together. The two brands have agreed to launch a joint venture that will supply gasoline and hybrid tech to their brands as well as others.
The two companies will be expected to reach a final agreement and launch the new venture by 2023, employing 19,000 people at 17 factories and 3 research facilities.
Reuters had an inside source and was able to report on this story thanks to an anonymous source.
Geely and Renault already have a joint venture in South Korea.
The joint venture will be equal for Renault and Geely, with each company holding 50 percent each. Geely will put its reach into building partnerships beyond China. With Volvo under Geely’s belt and 9.7 percent of Daimler AG as well, Geely is in an optimal position for its partnership.
Meanwhile, Renault’s existing alliance partner, Nissan, is also negotiating something with the French company. The two are looking into a partnership with a new venture for electric vehicles. According to the source, the Japanese automaker stated that it’s considering a venture that will be called “Ampere.”
As it stands, Renault is getting pretty busy, and Nissan took notice, raising concerns about the treatment of intellectual properties like battery, and powertrain technology and the possible implications if the venture pushes through with Geely. The Renault and Geely partnership will help Renault, Nissan, and Mitsubishi Motors, supplying about five million engines and hybrid powertrains per year once established.
With this, the scale could help stabilize the prices of powertrains for the companies or at least make things easier for them, which could open up more possibilities for new vehicles for all brands in the partnership. Nissan’s concerns appear valid since the brand has its own unique battery and hybrid technologies, which it might be adamant to share with other brands.