Renault and Geely sign cooperation deal in Brazil
The companies have joined forces before. However, not when it comes to electric cars. So, this deal in Brazil is a first. Both parties have agreed in a framework agreement that Geely Holding will become a minority shareholder in Renault do Brasil through an unspecified investment. In return, the Chinese will gain access to Renault’s existing network, specifically the Renault Group’s Ayrton Senna industrial complex in the state of Paraná and its nationwide distribution network. According to the press release, it “would be made available for production of these all-new vehicles for both Geely Holding and Renault, in addition to the current Renault lineup.”
Renault does not provide any further details on what these “zero and low-emission vehicles” will be. Just that new vehicles, as well as Renault’s current lineup, will roll off the production line there. Moreover, Renault do Brasil would distribute Geely’s zero- and low-emission vehicles in Brazil.
“Renault Group and Geely have already gone a pretty long way together: we successfully launched a joint venture in Korea and, with Horse, we have designed a world leader in powertrain technology, says Luca de Meo, CEO of the Renault Group. “Together, we have built trust and an effective working relationship. These are great assets that we want to leverage today with this new cooperation in Brazil.” He added that the cooperation would also help Renault strengthen its footprint in Brazil, which accounts for about 44 per cent of car sales in South America.
Geely CEO Daniel Li emphasised that it is crucial to work with partners to succeed in the industry. “In this transformative era of the global automotive industry, it makes sense to traverse to path ahead with friends and partners,” he said. “To achieve quantitative and qualitative growth, we cannot be satisfied just staying comfortable in one place, we must go out to the world, adhere to long-term development, and commit to being open and collaborative.”
The transaction is subject to final agreements and approval by the relevant regulatory authorities.
This is not the first cooperation between the groups. This is not the first cooperation between the groups. Geely and Renault already know each other well: in 2022, the Chinese bought a 34 per cent stake in Renault Korea Motors, where the focus is on hybrid and combustion cars. Last year, Renault and Geely founded HORSE Powertrain, a 50:50 joint venture to design, develop, produce, and sell all hybrid and combustion powertrain solutions. The company is based in Spain, with operations in seven countries. It has a production capacity of 3.2 million units per year.
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