Chinese automaker Geely will incorporate eight powertrain plants in China and one in Sweden into its upcoming combustion engine joint venture with Renault and Saudi Aramco, according to two sources familiar with the matter,cited by Reuters.
The joint venture, dubbed "Horse" by Renault and "Rubik" by Geely, was established in November last year to create more efficient gasoline engines and hybrid systems amid the auto industry's shift towards battery electric vehicles.
By the end of 2023, Renault and Geely aim for the joint venture to become a leading combustion engine and hybrid engine supplier for the automotive industry, boasting 19,000 employees and generating €15 billion ($16.3 billion) in annual revenue.
Renault previously disclosed that the Horse project would comprise 17 plants - eight from Renault located in Latin America, Europe, and Turkey, and nine from Geely.
The nine plants from Geely and Aurobay - the combustion engine unit formed by Volvo Cars (VOLCARb.ST) and Geely in 2021 and now fully owned by Geely - include eight in China and one in Skovde, Sweden, as reported by two sources on Wednesday.
Additionally, the joint venture will feature two Geely-Aurobay research and development (R&D ) centers in Hangzhou Bay, China, and Gothenburg, Sweden. Renault will contribute three R&D centers in Latin America and Europe.
One source said the globally balanced and complementary footprint of the joint venture is evident.
A Geely Europe spokesperson declined to comment on the matter.
Geely will contribute all of its engine and transmission plants to the joint venture, excluding its electric powertrains. Renault's electric vehicle (EV) technology will be kept separate from the Horse project, forming the core of its upcoming "Ampere" unit.
Renault's strategy to re-enter the electrification market involves a public listing for Ampère, which could take place later this year.
Geely and Renault have announced that the joint venture should have an annual production capacity of over five million internal combustion, hybrid, and plug-in hybrid engines and transmissions.
Saudi Aramco will provide expertise in e-fuels and hydrogen, further enhancing the joint venture's capabilities and offerings.
The collaboration between Geely, Renault, and Saudi Aramco aims to provide innovative solutions in the rapidly changing automotive industry, where the transition to cleaner and more efficient energy sources continues to gain momentum.
