Renault and Geely (the owner of Volvo and Lotus) signed a memorandum of understanding for a joint venture that includes the sale of hybrid vehicles in China with the symbol of the French brand. But these models will use Geely technology, as well as its networks of suppliers and factories. In this partnership, Renault's role should focus on sales and marketing.
With this new partnership, Renault aims to re-establish and solidify its presence in the world's largest car market, after the French manufacturer's partnership with China's Dongfeng ended in April 2020. By then, Renault had advanced which would focus its market presence with electric vehicles and light commercial vehicles.
In the case of Geely, this new partnership goes in the direction of others already signed, of sharing technologies, suppliers and factories, with the objective of reducing the development costs of electric vehicles and other technologies for the mobility of the future.
Unlike the partnership between Geely and Daimler agreed in 2019 — for the development and production in China of future Smart models — in which both companies have equal parts, this new partnership with Renault, it seems, will be majority-owned by Geely.
China, South Korea and more markets
The joint venture involves not only China, but also South Korea, where Renault has been selling and producing vehicles for more than two decades (with Samsung Motors), and the joint development of hybrid vehicles to be marketed there is discussed with the involvement of the Lynk & Co brand (another Geely Holding Group brand).
The evolution of the partnership may also expand beyond these two Asian markets, covering other markets in the region. Also under discussion seems to be, in the future, the joint development of electric vehicles.
Source: Automotive News.