Renault Group and Geely announce the creation of leading Powertrain Technology Company, “HORSE Powertrain Limited”

Following the joint venture agreement signed 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, headquartered in London, United Kingdom.

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% of its business. Together we will rise to meet the decarbonization challenge with innovation at the forefront of our operations.”

Eric Li, Geely Holding Chairman: “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.

A new player to disrupt the game and pave the way for ultra-low emission hybrid and combustion technologies.

HORSE Powertrain Limited will design, develop, produce, and sell all hybrid and combustion powertrain solutions and systems with state-of-the-art technologies including engines, transmissions, hybrid systems and batteries.

Thanks to this project, both Renault Group and Geely will benefit from immediate scale effect and market coverage enhancement. Supported by the transfer of Intellectual Property from Renault Group and Geely, HORSE Powertrain Limited 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. The joint venture’s complementary product portfolio and regional footprint could offer solutions for 80% of the growing global hybrid & combustion powertrain market.

HORSE Powertrain will supply multiple industrial customers including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan and Mitsubishi Motors Company. The company is ready to engage with customers and partners around the world to support them with end to end solutions in powertrain technologies and will welcome partners to further strengthen the value chain.

From Day One of its establishment, HORSE Powertrain Limited is worldwide leader in hybrid and combustion powertrain solutions with:

• 17 global plants
• 9 customers in 130 countries
• 5 R&D centers
• c.19,000 employees
• expected c. €15 billion in yearly revenues
• expected c.5 million units powertrain per year
• All types of hybrid solutions covered – full hybrids and long-range plug-in hybrids as well as internal combustion engines that use alternative fuels such as ethanol, methanol, LPG, CNG, H2 etc.

Governance structure

Renault Group and Geely, as funding shareholders of the powertrain company, have approved the global governance scheme as well as strategic appointments of HORSE Powertrain Limited.

Matias Giannini is appointed CEO of HORSE Powertrain Limited.

Lee Ma and Juan Ferrera are respectively appointed Chief Financial Officer and Chief Human Resources Officer of HORSE Powertrain Limited.

The management of the two subgroups Aurobay and Horse, bringing together the industrial know-how and assets of both companies remains unchanged: Ruiping Wang as CEO of Aurobay, based in Hangzhou Bay (China), Patrice Haettel CEO of Horse based in Madrid (Spain). They will directly report to Matias Giannini.

The board of directors of HORSE Powertrain Limited is composed of 6 members:

• Three directors from Geely: Daniel Li (Vice Chairman of Geely Auto and CEO of Geely Holding) will become chairman of the Board, Jerry Gan (CEO of Geely Auto Group) and Joe Zhang (Chief Financial Officer of Geely Holding).
• Three directors from Renault Group: François Provost (Chief Procurement, Partnerships and Public Affairs Officer), Gilles Le Borgne (Chief Technology Officer) and Denis Le Vot (CEO of Dacia and Chief Supply Chain Officer).

As of May 31, 2024, the respective operational entities of HORSE Powertrain Limited, namely Horse and Aurobay, will be deconsolidated respectively from Renault Group and Geely.