Renault and Geely Holding Group, China’s largest private automotive group and owner of Volvo, announced on Monday that they have signed a Memorandum of Understanding to establish new and innovative forms of partnership. And especially in the field of hybrid vehicles.
Joint venture Renault / Geely
Renault wants to relaunch its activities in China by setting up a joint venture with Geely Holding Group. The move comes a year after the French automotive group ended its previous operations in the world’s largest market.
Renault-branded hybrid vehicles in China
In China, the two partners will jointly introduce hybrid vehicle models under the Renault brand.
According to several sources, Renault and Geely are also considering developing fully electric vehicles through the joint venture.
Production project in South Korea
As part of the partnership, Renault and Geely have also agreed to study the establishment of a possible joint venture in South Korea to sell Geely’s hybrid vehicles there, while Renault has been operating in the country for over two decades.
The two partners will also study the possibility of localizing the production of vehicles based on the “Lynk&Co” platforms, in order to help Renault Samsung Motors (RSM) expand its range.
Geely already a partner of Daimler … itself a partner of Renault
Towards the creation of a future Renault-Geely-Daimler entity? The new Renault/Geely joint venture would be similar to the one founded by Geely with Daimler. However, it would be completely independent of the latter, while the French manufacturer and Daimler are already partners elsewhere.
It is not immediately clear how this new partnership will affect the joint operations of the French group with Nissan, nor in which factories the vehicles of the Renault-Geely joint venture will be produced.
Our opinion, by leblogauto.com
After dissolving its joint venture with Dongfeng Motor in 2020, Renault aims to regain a place in the Chinese market. Geely should help.
A document consulted by Reuters indicates that the Renault-Geely joint venture would initially focus on the Chinese and South Korean markets and then expand its activities to the fast-growing Asian markets.
It remains to be seen how Nissan should be positioned in this “ensemble” …