By Greg Gao 

(JW Insights) Jul 12 -- China’s major automaker Geely recently signed a 50:50 partnership agreement with French car company Renault Group to establish a new company focused on advanced hybrid powertrains and efficient fuel powertrains, JW Insights learned.

The new company will have equal representation from both companies on the board of directors, ensuring shared responsibility for the formulation and execution of the company’s strategies. 

During the initial phase of operations, the new company will ensure business continuity through two operational centers: one in Madrid, led by Renault Group, and another in Hangzhou, eastern China’s Zhejiang Province, led by Geely. Additionally, the new company’s headquarters will be located in the United Kingdom, where a management team will be established to integrate operations and determine future growth plans, according to the two companies.

Saudi Aramco, the world’s biggest oil producer, signed a letter of intent with Geely and Renault Group on March 2, with plans to strategically invest in the new powertrain technology company in the second half of 2023. Saudi Aramco’s investment would help the new company grow and fund research into synthetic and hydrogen fuels, both of which are key to decarbonizing the automotive sector, including cars with internal combustion engines, according to Renault.

Renault Group and Geely will transfer intellectual property to the operational centers enabling them to be fully autonomous in developing future powertrain technologies capable of addressing all market expectations. The new joint venture’s complementary product portfolio and regional footprint could offer solutions for 80% of the global ICE and hybrid market, said Geely.