Renault creates 50/50 joint venture with Geely and announces its electric Ampere brand

Geely and Renault have reached an agreement to create a new joint venture for the development, production and supply of combustion engines and hybrid transmissions.

Some of you may not be familiar with Geely, but it is one of the big Chinese manufacturers and its portfolio includes such important European brands as Volvo, Polestar, Aston Martin, Lotus, Smart and even 10% of Mercedes-Benz, among others.

These brands might sound a bit more familiar, don’t they?

The Renault group has announced this new joint venture with Geely to exploit what could be called the group’s combustion division.

In addition, Renault has also announced its strategy on 100% electric mobility and software, for which it has created a new brand: Ampere.

About the deal, Renault said: “the new company will supply a complete range of latest-generation engines and transmissions, including electrified versions, to many brands on worldwide”.

It may seem paradoxical that a Chinese giant like Geely is betting on an outdated technology such as combustion or hybridisation, but it should be borne in mind that not all countries will ban the sale of combustion cars by 2035, thus leaving plenty of market in South America, South Korea or North Africa among others.

This alliance will include a total of 17 engine and transmission plants around the world, five R&D&I centres in Europe, China and South America, and more than 3,000 engineers. In total, the new company will employ 19,000 people and serve more than 130 countries.

All this is expected to generate a turnover of more than 15 billion euros.

Luca de Meo CEO of the Renault Group said:

“We believe in cooperation when it comes to investing, creating and developing new businesses and technologies. This is at the heart of our horizontal approach. The partners, leaders in their fields, who participate in our various projects, are proof of the quality of our initiatives.”

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