Renault and Geely Join Forces to Create HORSE Powertrain: A Powerhouse for Sustainable Mobility

The automotive industry is undergoing a massive shift towards decarbonization, and Renault Group and Geely Holding Group (Geely) are at the forefront of this change. On July 11, 2023, these two industry leaders signed a joint venture agreement, and now, after securing the necessary approvals, they’ve officially launched HORSE Powertrain Limited.

A Shared Vision for a Greener Future

Luca de Meo, CEO of Renault Group, emphasizes the significance of this partnership. He highlights the need for innovation to achieve decarbonization and views HORSE Powertrain as a key player in developing ultra-low emission technologies. This collaboration allows Renault Group to maintain its global leadership in a crucial sector that represents a major portion of its business. Eric Li, Chairman of Geely Holding, echoes this sentiment. He acknowledges the importance of global cooperation and knowledge sharing in achieving net-zero emissions. He expresses his belief that HORSE Powertrain is well-positioned to offer the low-emission solutions the industry desperately needs.

Beyond Electric: A Multi-Pronged Approach

Renault Group and Geely recognize that a single solution won’t solve the decarbonization challenge. HORSE Powertrain will focus on a comprehensive approach, including:

• Highly Efficient Internal Combustion Engines (ICE): Optimizing traditional gasoline and diesel engines for improved fuel economy and lower emissions.
• Hybrid Technologies: Developing advanced hybrid systems that combine electric power with combustion engines for increased efficiency.
• Alternative Fuels: Exploring the potential of lower carbon options like green methanol, ethanol, and hydrogen.

HORSE Powertrain is a force to be reckoned with, boasting:

• Global Reach: 17 plants worldwide, supplying customers in 130 countries.
• Research and Development: 5 dedicated R&D centres focused on cutting-edge powertrain technologies.
• Experienced Workforce: A team of approximately 19,000 employees.
• Significant Production Capacity: An estimated annual output of 5 million powertrain units.
• Financial Strength: Expected yearly revenue of approximately €15 billion.

Comprehensive Solutions for a Diverse Market

• HORSE Powertrain caters to a wide range of hybrid and combustion powertrain needs, including:
• Full Hybrids: Vehicles that combine electric motors with gasoline engines for optimal efficiency in urban environments.
• Long-Range Plug-in Hybrids: Offering both electric driving and the ability to switch to gasoline for extended journeys.
• Alternative Fuel Engines: Engines designed to run on cleaner options like ethanol, methanol, and even hydrogen.

A Collaborative Approach to Sustainable Mobility

HORSE Powertrain isn’t just about internal production. They aim to be a comprehensive partner, supplying major automakers like Renault, Geely, Volvo, Nissan, Mitsubishi, and others. They’re also open to collaboration with new customers and partners to further strengthen the future of powertrain technology.

Leadership and Governance

The leadership team of HORSE Powertrain brings together expertise from both Renault and Geely. Matias Giannini is appointed CEO, while Lee Ma and Juan Ferrera oversee finances and human resources, respectively. The operational entities within HORSE Powertrain (Aurobay and Horse) maintain their existing leadership structures. A board of directors composed of three members from each parent company ensures balanced decision-making. This joint venture officially deconsolidates the operational entities from Renault Group and Geely’s financials as of May 31, 2024.

The launch of HORSE Powertrain marks a significant step towards a more sustainable future for the automotive industry. By combining their expertise and resources, Renault and Geely are well-positioned to develop and deliver the powertrain solutions needed to achieve decarbonization goals.

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