Renault and Geely’s HORSE Powertrain Joint Venture
The automotive world is abuzz with excitement as Renault and Geely embark on an innovative journey to redefine powertrain technology. The creation of HORSE Powertrain Limited marks a significant milestone, not just for these industry giants but for the future of sustainable mobility. Let’s dive into the story behind this groundbreaking partnership and explore what it means for the automotive landscape.
A Joint Venture Born From Vision
On May 31, 2024, Renault Group and Geely announced the official creation of HORSE Powertrain Limited, following their joint venture agreement signed in July 2023. This new company, headquartered in London, stands as a testament to the commitment of both automotive leaders to drive forward the decarbonisation of road transport.
The visionary leaders behind this venture include Luca de Meo, CEO of Renault Group, and Eric Li, Chairman of Geely Holding. Together, they have set the stage for HORSE Powertrain to become a dominant force in the hybrid and combustion powertrain market, addressing the critical need for ultra-low emission technologies.
ICE vs Hybrid Tech
An internal combustion engine (ICE) generates power solely by burning fuel (typically gasoline or diesel) within the engine, converting it into mechanical energy to drive the vehicle’s wheels. This process involves a cycle of fuel injection, compression, ignition, and exhaust, repeating rapidly to produce continuous power. While ICEs are efficient at converting fuel into power, they tend to lose energy as heat and emit higher levels of pollutants.
In contrast, a hybrid combustion engine integrates an electric motor and battery with a traditional ICE. This system allows the vehicle to run on electric power at low speeds and switch to the combustion engine for higher speeds or additional power. During braking, the electric motor also recharges the battery through regenerative braking. This hybrid approach significantly improves fuel efficiency and reduces emissions, offering a more sustainable alternative to conventional ICE vehicles.
Leading The Charge In Powertrain Innovation
HORSE Powertrain Limited is not just another player in the automotive industry; it is poised to revolutionise the sector with its advanced hybrid and combustion powertrain solutions. From day one, the company boasts an impressive portfolio of state-of-the-art technologies, including engines, transmissions, hybrid systems, and battery solutions.
The numbers speak volumes about the scale and ambition of this joint venture:
- 17 global plants
- 5 R&D centers
- Approximately 19,000 employees
- Expected annual revenues of around €15 billion (R293,732 billion)
- Production capacity of about 5 million powertrain units per year
With these resources, HORSE Powertrain is set to meet the demands of a global market, supplying powertrain technologies to major industrial customers such as Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, and Mitsubishi Motors Company.
A Synergy Of Expertise And Innovation
One of the most remarkable aspects of HORSE Powertrain Limited is the synergy between Renault and Geely. By combining their expertise and resources, these two automotive giants are positioned to lead the market in hybrid and combustion powertrain components and systems.
The transfer of intellectual property from both Renault and Geely ensures that HORSE Powertrain operates with full autonomy, capable of developing future powertrain technologies that meet diverse market expectations. This includes exploring alternative fuels such as green methanol, ethanol, and hydrogen, further solidifying their commitment to sustainability.
Governance And Leadership
At the helm of HORSE Powertrain Limited is Matias Giannini, appointed CEO, with Daniel Li, CEO of Geely Holding, serving as Chairman of the Board. The Board of Directors is equally represented by both Renault and Geely, ensuring balanced and strategic decision-making.
The leadership team also includes Lee Ma as Chief Financial Officer and Juan Ferrera as Chief Human Resources Officer, with Ruiping Wang and Patrice Haettel heading the subgroups Aurobay and Horse, respectively. This robust governance structure underscores the collaborative spirit and strategic foresight driving HORSE Powertrain forward.
Paving The Way For A Sustainable Future
As the automotive industry faces the monumental decarbonisation challenge, HORSE Powertrain Limited is positioned at the forefront of this transformation. By developing highly efficient internal combustion engines, lower carbon e-fuels, and advanced hybrid systems, Renault and Geely are ensuring that the transition to a sustainable future is not only possible but inevitable.
This joint venture also reflects a broader trend within the automotive industry. As electric vehicle sales face uncertainties, the importance of diverse powertrain technologies becomes clear. With more than half of vehicles expected to still rely on combustion engines by 2040, the solutions offered by HORSE Powertrain are crucial for achieving global emissions targets.
Join The Journey With Group1 Renault
At Group1 Renault, we are thrilled to share this exciting development with our community. The creation of HORSE Powertrain Limited represents a bold step towards a cleaner, more efficient automotive future. We invite you to stay connected with us for the latest updates and insights into Renault’s innovative strides. In the meantime, book a test drive of a current Renault vehicle to discover a passion for life.
