Shanghai (ZXZC)- Geely Automobile Holdings Limited ("Geely Automobile") announced on Nov. 8 it has signed a non-binding framework agreement with Zhejiang Geely Holding Group ("Geely Holding") and Renault Group to create a new joint venture dedicated to developing, manufacturing, and supplying internal combustion engine (ICE), hybrid and plug-in hybrid powertrains and transmissions. 

Under the framework agreement, Geely Holding and Geely Automobile (collectively referred to above as "Geely") will together hold 50% stake in the new joint venture, while the other 50% will belong to Renault Group.

Photo credit: Geely Holding

As of the announcement date, no binding definitive agreement has been inked by the three parties. Detailed terms related to the formation of the proposed joint venture, including the aforesaid ownership structure, consideration, corporate governance, and number of investors are still subject to negotiation and finalization.

According to a press release from Renault Group, the new joint venture will be a standalone global supplier of propulsion system solutions, focusing on producing next-generation hybrid propulsion systems and developing carbon-free and low-emission technologies. Upon its inauguration, the new company is expected to supply such clients as Renault, Dacia, Geely Auto, Volvo Cars, Lynk & Co, Proton, and also Nissan and Mitsubishi Motors Company.

Notably, the joint venture is planned to supply powertrain technologies to third-party car brands in the future.

The new joint venture will operate 17 powertrain plants on 3 continents, which feature a combined annual production capacity of more than 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year. Its products will be delivered to over 130 countries and regions.