Renault and Geely will jointly develop new hybrid vehicles for the Chinese and South Korean markets, with fully electric vehicles expected in the future
France’s Renault and China’s Geely have signed a memorandum of understanding, announcing that the two carmakers would collaborate for the development of petrol-electric hybrid vehicles. The French carmaker is looking to re-invigorate its business in China, while the Chinese auto giant would seek the former’s help for the South Korean market.
As per the agreement, Geely would produce Renault-branded hybrid cars using its own tech and platforms, leaving the marketing, sales and service development to the French manufacturer. Last year, Renault had ended its joint venture with Dongfeng Motor Group, and it is now looking to re-establish itself in the world’s largest car market with Geely.
Renault, on the other hand, will help Geely expand its business in South Korea. Its local arm in the country, Renault Samsung Motors, could be responsible for manufacturing vehicles based on Lynk & Co’s energy-efficient vehicle platforms. Also, speculations suggest that the partnership might later take a dive into developing battery electric vehicles as well.
There’s also a possibility that this partnership would expand to other markets as well. Due to strict emission norms, electrified vehicles are gaining popularity all around the world in recent years. China has some of the strictest emissions laws in effect, due to the massive levels of air pollution in the country, especially in major cities. The adoption of electrified vehicles helps reduce vehicle emissions by a significant margin.
Interestingly, Renault isn’t the only European carmaker to tie up with Geely. Daimler also has a partnership with the largest private-owned manufacturer in China, to build and export Smart-branded EVs to various international markets. Also, Geely-owned Volvo and Polestar brands are currently focussing heavily on electrified powertrains.
Volvo and Geely have jointly established a new company, named Aurobay, which would be responsible for the development of hybrid powertrains for both the manufacturers, as well as their partner companies. However, the development of fully electric vehicles will continue under Volvo, and by 2030, the brand aims to become a purely electric carmaker.
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