Renault and Geely - the Chinese giant that owns Volvo, Polestar, and Lotus - have combined forces to create a new company called Horse Powertrain Limited. This company will make engines for cars and vans sold worldwide.
Petrol, hybrid, and hydrogen
The two companies, in spite of being leaders in the electric vehicle revolution, have jointly decided that there will still be a significant need for combustion engines - engines made more efficient by better design, by adding hybrid power, and eventually by burning hydrogen fuel - “to achieve a successful decarbonisation in a world where more than half of vehicles produced are expected to still rely on combustion engines by 2040.”
Horse Powertrain will design and build engines and gearboxes, as well as hybrid systems and batteries, and the company will be independent in its decision-making, allowing it to: “ develop future powertrain technologies capable of addressing all market expectations, notably in the field of alternative fuels such as green methanol, ethanol, and hydrogen. The joint venture’s complementary product portfolio and regional footprint could offer solutions for 80 per cent of the growing global hybrid & combustion powertrain market.”
Will be used by Renault, Geely, Volvo, Nissan, and more
The engines and hybrid systems made by Horse Powertrain will be used in Renault Group, Geely Auto, Volvo Cars, Proton, Nissan and Mitsubishi models all over the world.
Because it’s basically a reorganisation of existing Renault and Geely assets, Horse Powertrain comes into being with 17 factories around the world, five R&D centres, 19,000 employees, and an expected €15 billion in annual revenues, making around five million engines each year.
Matias Giannini, formerly of Continental Group, has been appointed as CEO of Horse Powertrain.
Ultra-low emission
Luca de Meo, CEO of Renault Group, said: “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. Through Horse Powertrain, Renault Group can achieve worldwide leadership and scale in a sector representing more than 80 per cent of its business. Together we will rise to meet the decarbonisation challenge with innovation at the forefront of our operations.”
Eric Li, Geely Holding Chairman, declared: “For the industry to reach net zero emissions in the next decades, global synergies, multiple technologies, and sharing of expertise, are crucial. That is why we are pleased that our partnership with Renault Group is reaching commercial reality today. Horse Powertrain Limited will have the portfolio, scale and capacity to offer the low-emission solutions the automotive industry of tomorrow demands. Today’s launch marks a new chapter in sustainable mobility, and we at Geely are proud to play a part.”