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Renault Entered into a Joint Venture with Geely to Develop Gasoline Engines & Hybrid Technology

  • Newly formed company through the joint venture will be situated in London employing 19,000 employees
  • Renault and Geely agreed to hold equal stakes in the newly formed company, with each owning 50% share
  • Renault & Geely agreed on supplying internal combustion engines and hybrid powertrains to Nissan & Mitsubishi Motors

Renault Plans on Building Five New Businesses with the Aim to Become Next Generation Automotive Company 

Renault is witnessing continuous decline in its revenue. The company’s revenue declined from €43,474 million in 2020 to €41,659 million in 2021. With the fast-changing technological environment in the automotive industry, Renault is developing new strategies to revive its revenue and to stay competitive in the industry.

The company is strategizing to diversify and restructure its businesses across different value-chain of automotive industry. To implement the restructuring strategy, Renault is also partnering and collaborating with technology giants like Google and Qualcomm Technologies to develop technologically advanced offerings. Moreover, Renault is expanding its businesses outside Europe, through joint ventures and partnerships. The new corporate architecture is anticipated to improve the company’s financial performance. 

New Joint Venture with Geely Allowed Renault to Accomplish Goal of Creating its Combustion Engine Business as a Separate Company

Renault has been making efforts since a several months to establish a separate business unit for combustion engine. The new joint venture with Chinese firm Geely is another step in Renault’s strategy of business restructuring. The new company will be based in London, and shares will be held equally by the two companies. In addition, the new business will employ 19,000 people across 17 powertrain factories and three R&D hubs. Apart from Renault’s business restructuring strategy, Geely is developing strategies to broaden its operations outside of China, boost its clientele, and boost profitability.

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