In this day and age, the automotive world is dominated by alliances and partnerships. Most if not all brands are loosely or very related to one another under big corporate umbrellas, this strategy is one way to stay relevant and maintain costs by sharing technologies.
Renault x Geely
The latest brands to enter a partnership are Renault and Geely. The two brands have agreed to launch a new equally held joint venture that promises to supply gasoline and hybrid engines to brands they own and to other automakers as well.
This new company will be a global supplier of engines as well as, producing next-generation hybrid propulsion systems, and developing carbon-free and low-emission technologies from five global R&D centers.
Once the new company is up and running, it is expected to make engines for Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, and also Nissan, and Mitsubishi.
Renault’s joint venture with Geely will employ 19,000 people at 17 powertrain factories and three research and development hubs, the companies said, adding they expect to reach a final agreement and launch the new company in 2023.
This is significant news for the automotive world, Geely has been quick to increase its foothold on certain aspects of the automotive industry, and this joint venture furthers that.
What does this mean for us locally? Well, it’s highly likely that we would eventually receive vehicles equipped with joint venture engines, who knows, we could get them soon given that Geely, Nissan, and Mitsubishi are quite strong locally.