- Renault Group and Geely Holding have signed a preliminary agreement for the production and sale of low and zero-emission vehicles within Brazil.
- The agreement will allow Geely to make use of Renault’s already established production, sales, and distribution channels in the country.
- With Brazil existing as the sixth largest car market in the world, the partnership is a key move for Geely, marking the entry of the Chinese manufacturer into a growing EV market – where rivals such as BYD have already been present in the country for a number of years.
Renault and Geely team up again, this time in Brazil
It’s not the first time Renault and Geely have worked together in the automotive space. The duo already operate a joint venture arrangement in Korea, and last year jointly launched a new powertrain company, called HORSE.
Under this new agreement, Geely Holding will make an investment in Renault’s Brazillian arm (Renault do Brasil), becoming a minority shareholder of the OEM. Renault do Brasil will then become the local distributor of a portfolio of Geely cars, which will include a mix of both fully-electric models and ‘low emission vehicles’ – but the specific models of this portfolio have not yet been confirmed. In addition, two of Renault’s Brazilian production facilities would be opened up to produce new vehicle models – in addition to the current Renault-branded models produced at the sites.
Luca de Meo, CEO of Renault Group, commented:
“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, added:
“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.”
