Renault Group and Geely have created a new powertrain technology company called HORSE Powertrain Limited.
Following agreements signed in July 2023 by Renault Group and Geely, and after receiving approval from relevant authorities, HORSE Powertrain has been officially created as of May 31, with each group holding a 50% stake in the new company. Based in London, the new company will focus on the hybrid and combustion powertrain components and systems market.
Matias Giannini has been appointed CEO of HORSE Powertrain. The board of directors of the firm will be chaired by Daniel Li and will have six directors with equal representation from its shareholders. Lee Ma and Juan Ferrera have been named chief financial officer and chief human resources officer, respectively.
HORSE Powertrain expects to reach about 15 billion euros in annual revenues and a production of around 5 million powertrain units per year. As of day one, it will have a complete portfolio of state-of-the-art powertrain technologies for global partners including hybrid systems, internal combustion engines, transmissions and battery solutions.
All types of hybrid solutions will be covered: full hybrids and long-range plug-in hybrids as well as internal combustion engines that use alternative fuels including ethanol, methanol, liquefied petroleum gas (LPG), compressed natural gas (CNG) and hydrogen.
“Today marks an important step in meeting the greatest challenges facing the automotive industry: the decarbonization of road transport,” says Luca de Meo, CEO of Renault Group. “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.”
Renault Group and Geely believe that a combination of various powertrain technologies is necessary — including highly efficient internal combustion engines, 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.
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 worldwide to support them with end-to-end solutions in powertrain technologies and will welcome partners to further strengthen the value chain.