Groupe Renault and Geely Automobile to achieve 15,000 million annual turnover

Groupe Renault has formed an alliance with Geely Automobile Holdings for the development, manufacture and sale of components and systems for state-of-the-art electric and hybrid engines. From day one, this organization will generate a turnover of over €15,000 million with five million units per year.

The new company, 50 percent owned by two companies, will operate at 17 factories to supply 130 markets, as well as five R&D centers in Spain, Romania and Sweden. 3,000 engineers were added to these centers and 19,000 employees were added to factories on three continents.

This was announced by the company today, after it was confirmed by the Board of Directors chaired by Jean-Dominique Senard at a world press conference yesterday attended by Renault Group CEO Luca de Meo and Renault Finance Director. The Group, Thierry Piéton and his ambition to transform the automobile company into a “next generation” company, presented the third part of the group’s Renaulution strategy, ‘Revolution’.

This organization will offer a full range of technologies in all components: engine, transmission, hybridization system (xHEV) and batteries, all at the highest level. Thanks to this project, Groupe Renault will double its size and market coverage, from 40 percent to 80 percent worldwide.

This growth is supported by geographic expansion with access to North America and China, and product complementarity to provide automakers with complete low-emission solutions and systems. To this end, the business unit will develop its technological offering in the field of alternative fuels through strategic collaboration with a potential partner from the energy industry.

The new company will be an independent global supplier of next-generation hybrid powertrains and developing low-carbon and low-emission technologies from five global research and development centers. Since launch, the new company is expected to supply a number of industrial customers, including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, Nissan and Mitsubishi Motors Company, though the partnership may supply engines later. and transmissions to other manufacturers.

The combined product portfolio of Geely and Renault Group and the new company’s geographic footprint will enable it to offer solutions for 80 percent of the global ICE (internal combustion engine) market.

“With Renault, we are pleased to decide on an ambitious partnership with Geely to continue to develop internal combustion engine and powertrain technologies as the Renault Group accelerates its transformation to extract value from the entire new automotive value chain. It will remain in the world’s automotive supply chain for decades to come.” Luca de Meo, CEO of Renault Group, said:

In statements gathered by Ical, he pointed out that the group could offer next-generation powertrains and electric solutions to many car brands around the world, and “open up the market potential of this low-emission technology.”

Eric Li, chairman of Geely Holding, said the agreement announced today with Groupe Renault will allow “to create a world leader in hybrid technologies to provide car manufacturers with energy-advanced and highly efficient solutions”. in Europe. “This agreement builds on our commitment to leverage our Group’s technology expertise and portfolio of brands to continue our pioneering journey in sustainability and value creation, and drives us towards excellence for consumers,” he added.

The new company will be able to welcome new partners and shareholders impressed by the opportunity to contribute to the implementation of low- or zero-emission ecosystems worldwide. This framework agreement should lead to the completion of the project in 2023.

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