Renault Group and Geely Holding Group today jointly announced a framework agreement expanding their strategic cooperation in the production and sales of zero and low emission vehicles through Renault do Brasil, further strengthening their strategic partnership. Geely Holding would invest in Renault do Brasil to become a minority shareholder, enabling Geely Holding to gain access to localized production, sales and services resources. The venture remains subject to the entering of definitive agreements and prior approval of the relevant regulatory authorities.
Through this cooperation, the two advanced production facilities of Renault Group’s Ayrton Senna Complex in São José dos Pinhais, Paraná, would be made available for production of these all-new vehicles for both Geely Holding and Renault, in addition to the current Renault line-up.
On the sales side, Renault do Brasil would become a distributor of Geely Holding portfolio of zero and low emission vehicle products in Brazil. Geely Holding would thus benefit from Renault’s strengths and commercial expertise, accelerating the expansion of the group’s business in Brazil, the main automotive market in South America.
Luca de Meo, CEO Renault Group, said: “Renault Group and Geely have already gone a pretty long way together: we successfully launched a joint venture in Korea and, with Horse, we have designed a world leader in powertrain technology. Together, we have built trust and an effective working relationship. These are great assets that we want to leverage today with this new cooperation in Brazil. It will allow us to consolidate our industrial footprint in the state of Paraná and to further strengthen the position of the Renault brand on this key market.”
Eric Li, Chairman of Geely Holding Group, said: “Geely’s cooperation with Renault is part of its commitment to working with global partners in transforming and improving the industry in a sustainable direction. From South Korea to global powertrains, and now to Brazil, Geely’s relationship with Renault has moved forward. By working together, we mutually benefit from shared synergies and improved efficiencies to create greater value for our global users.”
Daniel Li, CEO of Geely Holding Group, said: “In this transformative era of the global automotive industry, it makes sense to traverse to path ahead with friends and partners. To achieve quantitative and qualitative growth, we cannot be satisfied just staying comfortable in one place, we must go out to the world, adhere to long-term development, and commit to being open and collaborative.”
Through this new partnership, Renault Group and Geely Holding Group would be able to further empower the global expansion of their respective brands, and be key players in Brazil, a market representing 44% of the automotive sales in Latin America.
SOURCE: Renault Group
