Chinese holding Geely and Renault Group signed a memorandum of understanding, which involves cooperation in the development of hybrids, the exchange of technologies and resources. It is about creating a joint venture that will produce and sell hybrid vehicles under the Renault brand in China. The agreement also contains a clause on the South Korean market: the parties intend to study the issue of localizing machines on the Lynk & Co platform.
A statement posted on Geely’s global website suggests that the partners will focus on “hybrid vehicles in fast-growing Asian markets,” while continuing to seek additional opportunities for collaboration.
Earlier it became known that Volvo, which has been owned by Zhejiang Geely Holding since 2010, will buy out a stake in joint ventures in China from the Chinese. The Swedes have signed an agreement with their parent holding to acquire a stake in joint ventures in the Chinese cities of Chengdu and Daqing and a research center in Shanghai. The transfer of control will take place in stages: it will begin in 2022 and end, presumably, in 2023.
In parallel, Geely is strengthening its partnership with Daimler. In 2019, Geely Holding, which by that time already owned a 9.7 percent stake in Daimler, acquired 50 percent of smart shares from the German concern. At the same time, the parties agreed to jointly produce electric cars under the smart brand, which will be sold in China and Germany.
The first smart model developed under the control of Geely will debut at the Munich Motor Show in September: it will be a battery-powered B-class crossover and will be the largest vehicle in the brand’s history.
The production of electric “Smart” is organized at a Chinese plant, in the construction of which Daimler and Geely have invested 2.7 billion yuan each (almost $ 389 million). The first electric cars will leave the assembly line of the enterprise in 2022.