Renault, Geely sign MoU for production of hybrid vehicles

 Geely Holding and Renault Group have signed a memorandum of understanding  to produce hybrid vehicles in China and accelerate ‘Renaulution Plan’ in South Korea.

A hybrid vehicle combines petrol engine with an electric motor and a hybrid battery. This makes vehicle exceedingly fuel-efficient as it tends to only use the engine for accelerating, climbing hills or when extra power is required.

Part of the MOU, according to a statement obtained on the Renault Group’s website, is for both partners to jointly introduce Renault-branded hybrid vehicles in China, while in South Korea, Geely Holding and Renault Group will explore localisation of vehicles based on Lynk & Co energy efficient platforms.

This is to make the Geely Holding and Renault Group enhance their competitive advantages in technology and industrial systems to create leading mobility experience.

It stated that the cooperation, focused on China and South Korea as initial key core markets, would allow Renault Group and Geely Holding to share resources and technologies, stressing that the focus would be on hybrid vehicles in the fast-growing Asian markets.

Part of the statement read, “Following the adoption by Geely Holding’s opensource strategy for its full vehicle architectures, Geely Holding will partner with Renault Group in the Chinese and Korean markets.

“In China, based on Geely Holding’s existing technologies and mature industrial footprint, both partners will jointly introduce Renault-branded hybrid vehicles. Renault will contribute on branding strategy, channel and service development, defining appropriate customer journey.

“In South Korea, where Renault Samsung Motors has over two decades of experience, the MoU allows Renault Group and Geely Holding to jointly explore localization of vehicles based on Lynk & Co’s energy-efficient vehicle platforms for local markets.”

It added that both partners would continue to explore in-depth further potential, under the spirit of open and innovative partnership mode.