On May 31st, 2024, following the joint venture agreement signed earlier on July 11, 2023, and after having obtained the approval of the relevant authorities, Renault Group, Geely Holding Group (Geely Holding), Geely Automobile Holdings Limited (Geely Auto) (collectively referred to above as “Geely”) have officially created HORSE Powertrain Limited, with its headquarters in London, United Kingdom.

The earlier signed joint venture agreement had the aim to become the leader in next-generation hybrid and highly efficient powertrain solutions to meet worldwide demand for the years to come. Wonder why not full electric powertrain?

So, it would seem that the large automotive groups are seeing what the Japanese car manufacturers (like Toyota) have been saying all this while, Hybrid is the best solution. Just look at the mileage of the all new Toyota Prius.

Interestingly, As early as 2010, after Volvo joined Geely, the two companies saw the future of the automotive industry was moving towards greater electrification with zero-emission electric mobility as the ultimate target. The transition would take several decades with hybrids playing an important role as infrastructure is built and consumer behavior changes.

The two brands jointly worked on the latest VEA which is the Volvo Engine Architecture, a modular engine architecture developed from the onset to support hybrid electric powertrains.

Meanwhile, on this latest news, Luca de Meo, CEO Renault Group declared: “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 percent of its business. Together we will rise to meet the decarbonization challenge with innovation at the forefront of our operations.”

Addtionally, Eric Li, Geely Holding Chairman commented: “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.”

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 decarbonization in a world where more than half of vehicles produced are expected to still rely on combustion engines by 2040.