Renault and Chinese Carmaker Geely form JV to Develop Hybrid Engines

French automaker Renault and its Chinese partner Geely have announced the formation of a joint venture focused on developing combustion and hybrid engines. This 50-50 venture, named HORSE Powertrain, aims to bolster the competitiveness of its legacy auto business by reducing costs and expanding market reach through strategic partnerships.

Renault's strategy includes signing multiple partnerships to stay competitive against larger rivals, while Geely is expanding its global footprint through collaborations. Previously, Geely entered into a hybrid gasoline engine development deal with Mercedes-Benz and holds a stake in the German automaker.

The joint statement from Renault and Geely emphasized the necessity of combining various powertrain technologies to achieve successful decarbonization, noting that more than half of the vehicles produced by 2040 are expected to still rely on combustion engines.

HORSE Powertrain will be headquartered in London and will not only supply engines to Renault and Geely's brands but also to third-party manufacturers. The business aims to generate about 15 billion euros ($16.2 billion) in annual revenue and produce approximately five million powertrain units per year.