Renault and Geely Finalizing ICE and Hybrid Joint Venture This Month
The joint venture will produce engines for a host of brands from the Renault and Geely groups
Renault and Geely to Finalize Joint Venture
Renault and Geely are in the process of finalizing their joint venture for combustion and hybrid engines, with the deal expected to be completed by the end of this month. The agreement was first made in mid-2023 and will see the two companies collaborate to produce engines for various brands within the Renault and Geely groups.
This joint venture provides Renault with the opportunity to reduce costs and enter new markets. It will also help strengthen Renault's business in the area of internal combustion engine (ICE) models, which still make up the majority of its revenue. It is estimated that around 93% of Renault's new vehicle sales in 2023 came from its combustion and hybrid models.
In addition to supplying engines for Renault and Geely brands, such as Volvo, Proton, Nissan, Mitsubishi, and Punch Torino, the joint venture is also expected to work with third-party manufacturers in the automotive industry and other sectors.
Renault's 'Horse' Business
Renault's side of the joint venture is referred to as 'Horse' and is based in Madrid, Spain. The company already has 9,000 former Renault Group employees working across 8 manufacturing sites, with a production capacity of 3.2 million units per year. Renault Horse also has a presence in several other countries, including Argentina, Brazil, Chile, Portugal, Romania, Spain, and Turkey, and operates 3 research and development centers.
The CEO of Horse, Patrice Haetell, stated in mid-2023 that he expects combustion and hybrid vehicles to account for over 50% of global sales in 2040. Haetell believes that Horse will lead the market in low-emission solutions and technological expertise, making it an international reference in combustion engine and hybrid technologies.
Impact of Hood Height on Pedestrian Safety
New research has found that increasing a vehicle's hood height by just four inches can significantly increase the likelihood of fatal outcomes for pedestrians in collisions. According to the study, raising the height of a vehicle's hood by this amount raises the chances of a fatal outcome by 22%.
This finding highlights the importance of designing vehicles with pedestrian safety in mind. Automakers should consider ways to mitigate the risks associated with higher hoods, such as implementing active safety technologies and improving the visibility and detection of pedestrians.
