Renault has teamed up with Geely to work on… internal combustion engines

In July last year, the Renault Group and Geely announced they were exploring the possibility of working together to create a new powertrain company that’d focus on hybrids, internal combustion engines, synthetic fuels and hydrogen. Said company has now been created, and it has the excellent name ‘HORSE Powertrain Limited’.

We’re told that HORSE Powertrain has been officially created today (31 May 2024) and that it’ll have its global headquarters in London. 

“Renault Group and Geely believe that a combination of various powertrain technologies is necessary, including highly efficient internal combustion engines (ICE), lower carbon e-fuels, and hydrogen, 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,” reads the press release that accompanied the announcement.

Renault and Geely will each hold a 50 per cent stake in the new company, which will design, develop, build and sell all the bits needed for a hybrid or ICE powertrain. That means it’ll work on engines, gearboxes, hybrid systems and batteries. We’re told that from day one it will have 17 plants across the world, five R&D centres and around 19,000 employees. That’s a seriously quick hiring process they’ve got there.

HORSE is apparently expecting €15 billion in yearly revenues and is looking to build five million powertrains per year. Initially it’ll supply the Renault Group, Geely, Volvo, Proton, Nissan and Mitsubishi.

“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,” said Renault Group CEO Luca de Meo. “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 said: “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.”