Geely and Renault to collaborate on drivetrain development

The Renault Group and Geely Holding Group have announced a new joint venture that will design, develop, produce, and sell hybrid and combustion powertrain solutions and systems.

The new firm, called Horse Powertrain Limited, is headquartered in London, U.K., and will develop state-of-the-art technologies including engines, transmissions, hybrid systems and batteries.

Both Geely and the Renault Group state that they will benefit from economies of scale and enhanced market coverage as a result of the new joint venture, which will be supported by the transfer of intellectual property from both sides, while staying fully autonomous in developing future powertrain technologies to address expected market demand.

Horse Powertrain is expected to also supply marques including Volvo Cars, Proton, Nissan and Mitsubishi Motors Company. The firm is expected to reach annual capacity of close to five million powertrain units per year, and is set to operate 17 plants located around the world.