On July 11, Geely Automobile Holdings Limited announced that the company, Geely Holdings and Renault entered into a capital contribution agreement and a joint venture agreement, according to which the contracting parties conditionally agreed to establish a joint venture company to engage in powertrain business.。The contracting parties contribute to the joint venture company in exchange for their respective shares in Aurobay Holding, Aurobay SG and Horse Holding.。

Back in November last year, Geely signed a framework agreement with Renault on the joint venture, and this time a formal agreement was reached.。Renault has completed an internal reorganization of the Horse Holding Group.。Geely, for its part, has completed its internal restructuring of Aurobay Holding Group and Geely Holdings has completed its internal restructuring of Aurobay SG Group。

After the settlement, Geely Automobile's indirect wholly-owned subsidiary Aurobay Holding (BVI), Geely Holdings' indirect wholly-owned subsidiaries GHPT Limited and Renault own 33%, 17% and 50% of the joint venture, respectively.。In other words, Geely Automobile and Geely Holdings (collectively, "Geely") and Renault each hold 50% of the joint venture.。As a result, the new company will be co-led by Geely and the Renault Group, with half of the board members working together to develop and implement the company's growth strategy.。

On the Board, Aurobay Holding (BVI) will appoint 2 directors, GHPT Limited will appoint 1 director and Renault will appoint 3 directors。

The transaction will be completed in the second half of the year, subject to the approval of the relevant antitrust and foreign direct investment authorities and conditions permitting.。

In addition to disclosing matters relating to the joint venture, Geely also issued matters relating to powertrain purchases。According to the announcement, after the delivery, Geely's power companies - Aurora Bay Technology and Geely Changxing will become subsidiaries of the joint venture.。On July 11, Geely entered into a powertrain product purchase agreement with Aurora Bay Technology and Geely Changxing。

Public information shows that Aurora Bay Technology Co., Ltd., formerly known as Geely Powertrain Co., Ltd., was registered and established in 2012. It has 6 engine plants, 2 Sino-Australian cooperative automatic transmission plants, 1 manual transmission plant and Australia DSIH Transmission Company。Geely Changxing is mainly engaged in transmission and its parts research and development, production, sales, maintenance related technical services.。

Regarding the new company, according to the official introduction, the new company headquarters to land in the UK, will set up a management team, and determine the future development plan。The new company will develop, manufacture and supply advanced hybrid powertrains and efficient fuel powertrains worldwide.。

In the early stages of the company's operations, the new company will ensure business continuity through two operations centers.。Renault Group's operations center is located in Madrid and Geely's operations center is located in Hangzhou Bay。Geely and Renault Group will transfer the relevant intellectual property rights to their respective operations centers, allowing the new company to develop future powertrain technology entirely on its own.。With a complementary product portfolio and global footprint, the new company's products can cover 80% of the global fuel-powered and hybrid vehicle market application needs。

The new company will have five R & D centers and 17 factories in Europe, Asia and South America, with a total workforce of about 19,000.。The new company will have an annual production capacity of more than 5 million engines and gearboxes, including traditional power and hybrid power.。After formal operation, the new company will provide services to multiple brands, including Renault, Geely, Volvo, Proton, Nissan, Mitsubishi Motors and PUNCH Torino Powertrain。The new company is committed to becoming a leader in the next generation of efficient, energy-saving hybrid system solutions。

In addition, Geely disclosed strategic investors in the new company。Saudi Aramco signed a letter of intent with Geely and Renault Group on March 2 this year and is currently evaluating a strategic investment in the new joint venture in the second half of this year。

The new company is backed by two major auto groups and naturally has some advantages。Geely said that Geely Automobile and Renault will conduct long-term procurement cooperation with the new company. The purchased products include engines and gearboxes for fuel-powered and hybrid passenger cars. At the same time, the new company will provide hybrid battery development business for Renault light commercial vehicles.。

Luca de Meo, CEO of Renault Group, said: "In the face of today's challenges in the automotive industry, no one can have all the solutions on their own.。Breakthrough innovation requires expertise and assets。The race to decarbonize the global transportation industry is intensifying and we need to act now to proactively respond to change。We are very pleased to enter into a new cooperation with a great company like Geely to meet the challenge and seize the opportunity in ultra-low emission powertrain technology。"

Li Shufu, Chairman of Geely Holding Group, said: "We are very pleased to be able to open this cooperation to build a world-leading company in the field of efficient hybrid technology and provide low-emission solutions for automobile brands around the world.。We look forward to working with Mr. Luca de Mayo and his team to accelerate the implementation of the project.。The signing of the agreement once again reflects Geely Holding Group's commitment to sustainable green and low-carbon development and creating an excellent user experience.。We will give full play to the professional experience and resource advantages of technology research and development, engineering manufacturing and multi-brand collaborative development to create maximum value for cooperation.。"

This is not the first collaboration between Geely and Renault。In August 2021, Geely and Renault signed a memorandum of understanding, and the two established an innovative partnership.。He also said that China and South Korea will be the key markets for cooperation.。In January 2022, Geely and Renault plan to launch fuel and hybrid models in the Korean market, which is expected to be put into production in 2024。In May of the same year, Geely subscribed for about 34% of Renault Korea.。

Over the years, Geely has been overseas "layout"。In 2010, Geely acquired Volvo wholly; in 2017, Geely acquired about 50% of Malaysia's DRB-HICOM's Proton Motor, achieving successful control of it; in 2018, Geely acquired 10% of Mercedes-Benz's parent company for $9 billion to become the largest shareholder; in 2022, Geely acquired Aston Martin 7, UK..6% of the shares, becoming its fourth largest shareholder and further increasing its holdings to 17% this year, making it the third largest shareholder.。This deepening of cooperation with French auto giant Renault, it is foreseeable that Geely's overseas influence will once again strengthen。

According to publicly available information, Geely Automobile and its subsidiaries sold 137,897 vehicles in June, up about 9 percent from a year earlier.。From January to June, Geely's sales totaled 69.40,000 vehicles, up 13.1%, ranking ninth in China's auto sales, with a market share of 5.2%。In terms of auto exports, Geely exported 12 cars in the first half of the year..10,000 vehicles, ranking sixth。