London HQ for new ICE and hybrid powertrain venture from Geely and Renault

Renault Group and Geely have officially launched a joint venture business, HORSE Powertrain, headquartered in London, which will focus on future generations of hybrid systems, internal combustion engines, transmissions and battery solutions.

It wants to pave the way for ultra-low emission hybrid and combustion technologies.

Although the UK and Europe have aims for widespread adoption of zero carbon emission cars, typically purely electric-powered, electrification of some countries around the world will be harder and both Renault Group and Geely expect demand for efficient combustion engines to continue for many years. They said more than half of vehicles produced for global demand are expected to still rely on combustion engines by 2040.

They 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 .

Luca de Meo, chief executive of Renault Group, said: “Today marks an important step in meeting the greatest challenges facing the automotive industry: the decarbonization 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% of its business. Together we will rise to meet the decarbonisation challenge with innovation at the forefront of our operations.”

Alongside its London headquarters, the company has 17 factories and five R&D centres globally with around 19,000 employees, and the capability to produce around five million powertrain units per year.

HORSE Powertrain will supply multiple industrial customers including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan and Mitsubishi Motors Company. 

Following the transfer of intellectual property from the two vehicle manufacturing giants, HORSE Powertrain is now fully autonomous in developing future powertrain technologies capable of addressing all market expectations, notably in the field of alternative fuels such as green methanol, ethanol, and hydrogen.

Eric Li, Geely Holding chairman, added: “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.”

The new company will be headed by Matias Giannini in the role of chief executive, and its board is composed of three directors from each of Renault Group and of Geely.