Geely signs JV agreement with Renault for expansion in Brazilian market

Shanghai (Gasgoo)- On June 20, Geely Automobile Holdings Limited ("Geely Automobile" or "the Company") announced that it had signed a capital contribution and joint venture agreement with Geely Holding, GA (SGP) (a wholly-owned subsidiary of the Company), GH (SGP) (a wholly-owned subsidiary of Geely Holding), Renault, and the joint venture Company ("the JV Company") for establishing a significant new partnership in Brazil.

Photo credit: Geely 

According to the agreement, GA (SGP) will contribute the entire issued share capital of its wholly-owned subsidiary along with a cash investment to the JV Company, in exchange for common shares, warrants, and convertible preferred shares in the JV Company. Meanwhile, GH (SGP) will contribute the entire issued share capital of its wholly-owned subsidiary in exchange for common shares.

Upon completion of the transaction, the JV Company will be owned 73.57% by Renault, 21.29% by GA (SGP), 5.11% by GH (SGP), and 0.03% by an independent third party. The CEO of the JV Company will be appointed by the JV Board upon the proposal of Renault.

Geely Automobile stated that the partnership will provide it with immediate access to Brazil, the largest automotive market in Latin America, strengthening its brand presence and expanding its market coverage. Through the JV Company, Geely will leverage Renault's extensive and mature commercial ecosystem in Brazil, including a solid distribution infrastructure and a nationwide dealer network that provides both sales and after-sales services. These advantages are expected to accelerate Geely's market share growth in the country.

The collaboration between Geely and Renault began in August 2021, when the two companies signed a memorandum of understanding to form an innovative partnership focused on hybrid power technologies, targeting China and South Korea as initial core markets.

In January 2022, the two firms deepened their cooperation by agreeing to produce Renault-branded hybrid EV models at Renault's Busan plant in South Korea, using Geely's CMA architecture and hybrid power technologies. That same year, Geely's wholly-owned subsidiary CIL acquired a 34.02% stake in Renault Korea for 1.376 billion yuan, solidifying their local collaboration.

In November 2022, Geely Holding, Geely Automobile, and Renault signed a framework agreement to establish a global joint venture focused on internal combustion, hybrid, and plug-in hybrid powertrain technologies and transmissions. This culminated in the formal launch of HORSE Powertrain Limited in May 2024, with equal 50/50 ownership between Geely and Renault. The new company brings together 17 factories, five R&D centers, and 19,000 employees, targeting €15 billion in annual revenue.

Photo credit: Geely

The first co-developed model from the Geely-Renault partnership—the all-new Renault Koleos based on Geely's CMA platform—went on sale in South Korea in the second half of 2024. It is built at Renault Korea's Busan facility and serves both local and export markets of the country.

In February 2024, Geely Holding signed another framework agreement with Renault to become a minority shareholder in Renault's Brazilian operations. The two parties committed to developing low- and zero-emission vehicles and jointly expanding across Latin America.