Horse, the new London-based ICE powertrain tech firm formed by Renault and Geely, will make some five million units a year as it supplies car makers including Volvo and Nissan.
The new company, announced last July and today officially formed, aims to become the “global leader” in developing, manufacturing and supplying "best-in-class" and highly efficient hybrid, petrol and diesel powertrains as the wider Renault and Geely groups work to electrify their model ranges.
Early projections for the joint venture point to an initial annual turnover of £13 billion. Its French and Chinese parent firms will each hold a 50% stake.
Renault Group CEO Luca de Meo said this “new player” will “disrupt the game” and “open the way” for new ultra-low-emission ICE technologies.
He added: “Today marks an important step in meeting the greatest challenges facing the automotive industry: the decarbonisation of road transport.
“Partnering with a leading company like Geely to create a new player with the capability and expertise to develop ultra-low emission internal combustion engines and high economy hybrid technologies is key for the future.
He added: “Through Horse, Renault Group can achieve worldwide leadership and scale in a sector representing more than 80% of its business. Together we will rise to meet the decarbonization challenge with innovation at the forefront of our operations.”
Geely chairman Li Shufu said Horse would “become a global leader in hybrid technologies, providing low-emission solutions for auto makers around the world”.
Li continued: “For the industry to reach net zero emissions in the next decades, global synergies, multiple technologies and sharing of expertise are crucial.
"Today’s launch marks a new chapter in sustainable mobility.”
Horse will encompass 17 plants worldwide and five R&D centres across three continents, employ some 19,000 staff and supply systems to 130 countries.
The Renault Group has previously pointed to a predicted annual growth rate of 2% in the ICE and hybrid segments until 2030, with markets such as Latin America, India, South Korea and North Africa still favouring ICE vehicles.
Heading up Horse is CEO Matias Giannini, former executive vice-president of sales at German powertrain supplier Vitesco Technologies. Six directors – three from Renault and three from Geely – will sit on the firm’s board.
Add your comment