By Li Panpan

Chinese carmaker Geely Holding Group and French auto giant Renault Group announced having signed a non-binding framework agreement to set up a joint venture to produce hybrid powertrains and internal combustion engines for cars on November 8, JW insights reported.

According to the agreement, Geely and Renault will merge their powertrains business in 2023, each holding a 50% equity stake in the new company.

The new company operates 17 powertrain plants on three continents, employing around 19,000 people in total.

Geely’s operations also include two companies in Australia. The power engine joint venture Geely and Volvo established in August 2021 in eastern China’s Zhejiang Province will also be merged into the new company.

After the change, the Geely-Renault venture will have a combined capacity of over 5 million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year. It will provide solutions to leading brands like Volvo, Renault, Dacia, Geely, Lynk & Co, Proton, Nissan, and Mitsubishi.