Renault Group and Geely Form Alliance for the Establishment of Pioneering Powertrain Technology Firm
The automotive industry is set for a significant shake-up, as Renault Group and Geely Holding Group have announced the formation of a new powertrain technology company. Named HYVE, the joint venture aims to become a global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient internal combustion engine (ICE) powertrains.
The new company, which is expected to be established in the UK, will have an executive team based in the headquarters to consolidate operations, build on synergies, and define future plans. The joint venture will be jointly led by Renault Group and Geely, with equal board members.
Luca de Meo, CEO of Renault Group, expressed pride in joining forces with Geely Holding Group, while Eric Li, Chairman of Geely Holding Group, expressed enthusiasm about becoming a global leader in hybrid technologies. Both leaders also expressed a sense of urgency in addressing the challenges of decarbonizing road transport.
At launch, HYVE is expected to supply multiple industrial customers, including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi Motors Company, and PUNCH Torino. Aramco, the Saudi Arabian oil company, is evaluating a strategic investment in HYVE, which could support the growth of the company and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
The initial organization will secure the continuity of the business with two operational centers in charge of the respective operations: Madrid for Renault Group and Hangzhou Bay for Geely. Renault Group and Geely will transfer Intellectual Property to these operational centers, enabling them to be fully autonomous in developing future powertrain technologies.
Eric Li reiterated Geely's commitment to leveraging group-wide technological expertise and brand portfolio to pioneer sustainability and value creation. Luca de Meo stated that the new company aims to disrupt the market and open the way for ultra-low emissions ICE technologies.
The joint venture's complementary product portfolio and regional footprint could offer solutions for 80% of the global ICE and hybrid market. Aramco's investment and the strategic partnership with Renault Group and Geely Holding Group are expected to position HYVE as a key player in the global powertrain technology market.
Both Luca de Meo and Eric Li expressed excitement about working together and the potential for HYVE to make a significant impact on the industry. The signing of a binding joint venture agreement on July 11, 2023, marks the start of this exciting new chapter in the automotive industry.
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