Shanghai (ZXZC)- Shanghai Following the signing of a joint venture agreement on July 11, 2023, and receiving prior approval from relevant regulatory authorities, Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (collectively referred to as "Geely") have officially established HORSE Powertrain Limited, which is headquartered in London, UK, Renault Group announced on May 31.

By 2040, it is expected that more than half of the world's vehicles will still rely on oil-fueled powertrain technology. Therefore, Renault Group said the company and Geely believe it is necessary to advance the development of efficient fuel-burning engines, low-carbon e-fuels, and hydrogen fuel powertrains to successfully decarbonize the automotive industry.

Photo credit: Renault Group

HORSE Powertrain Limited will utilize cutting-edge technology to design, develop, produce, and sell industry-leading hybrid and combustion powertrain solutions and systems, including engines, transmissions, hybrid systems, and batteries.

Renault Group said the new company will bring immediate economies of scale, increase market coverage, and effectively support the growth of two parties. The duo will transfer relevant intellectual property to HORSE Powertrain Limited, enabling the new company to independently develop future powertrain technologies to meet various market demands, particularly in the fields of green methanol, ethanol, and hydrogen alternative fuels. With a complementary product portfolio and a global business layout, the new company's products will cover 80% of the growing global hybrid and combustion powertrain market demand.

HORSE Powertrain Limited will serve multiple brands, including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, and Mitsubishi Motors. In the future, the new company will provide end-to-end power system solutions for more global automotive brands and continue to welcome new partners to create greater value.

Luca de Meo, CEO of Renault Group, stated, "The establishment of the joint venture is a significant step in addressing the automotive industry's biggest challenge—decarbonizing transportation. We are delighted to collaborate with a leading company like Geely to create a new entity with technical strength and professional expertise. Developing ultra-low emission fuel powertrains and efficient hybrid technology is crucial for our future success. Together, we will apply innovative technologies to tackle the decarbonization challenge."

Li Shufu, Chairman of Geely Holding Group, commented, "The automotive industry's mission is to achieve net-zero emissions in the coming decades, making global resource coordination, technological diversity, and professional capability sharing essential. We are pleased to have completed the cooperation project with Renault Group. The establishment of this new company will open a new chapter in sustainable mobility. With advanced technology, a diverse product portfolio, and the cost advantages of scale development, HORSE Powertrain Limited is set to make a significant contribution to global automotive low-carbon emissions reduction."

From its inception, HORSE Powertrain Limited aims to be a global leader in hybrid and combustion powertrain components and systems. The company will boast 17 factories worldwide, 8 major clients across markets in 130 countries and regions, 5 R&D centers, approximately 19,000 employees, an annual revenue of around 15 billion euros, an annual production volume of about 5 million sets of powertrain, and a comprehensive range of hybrid solutions, including full hybrids and long-range plug-in hybrids as well as internal combustion engines that use alternative fuels such as ethanol, methanol, liquefied natural gas, compressed natural gas, and hydrogen.

As shareholders, Renault Group and Geely have approved HORSE Powertrain Limited's global management structure and executive appointments.

Matias Giannini has been appointed CEO (Chief Executive Officer) of HORSE Powertrain Limited, Ma Le has been appointed CFO (Chief Financial Officer), and Juan Ferrera has been named CHO (Chief Human Resources Officer).

The two subsidiary business groups, Horse and Aurobay, will maintain their current management teams: Patrice Haettel will continue as CEO of Horse, based in Madrid, Spain, and Wang Ruiping will continue as CEO of Aurobay, based in Hangzhou Bay, Ningbo, China. They will report directly to Matias Giannini.

The board of directors of HORSE Powertrain Limited comprises six members:

Three directors from Renault: François Provost (Chief Procurement, Partnerships and Public Affairs Officer), Gilles Le Borgne (Chief Technology Officer) and Denis Le Vot (CEO of Dacia and Chief Supply Chain Officer).

Three directors from Geely: Daniel Li (Vice Chairman of Geely Auto and CEO of Geely Holding) will become chairman of the Board, Jerry Gan (CEO of Geely Auto Group) and Joe Zhang (Chief Financial Officer of Geely Holding).

As of May 31, 2024, the operational entities of HORSE Powertrain Limited, Horse and Aurobay, will be separated from Renault Group and Geely, respectively.