Geely acquires 26.4 per cent of Renault do Brazil
As early as February, Renault and Geely publicly announced their intention to join forces in the Latin American country. At that time, it was already stated that the Geely Holding Group would become a minority shareholder in Renault do Brasil through an undisclosed investment. In return, the Chinese company would gain access to Renault’s existing infrastructure – specifically, the Ayrton Senna Industrial Complex of the Renault Group in São José dos Pinhais in the state of Paraná, as well as Renault’s nationwide distribution network.
The agreements have now been finalised: Geely is acquiring 26.4 per cent of the Brazilian subsidiary Renault do Brasil. The Renault Group remains the majority shareholder and can continue to consolidate the company in its financial statements. In return, Geely gains access to the aforementioned Renault do Brasil facilities.
One key element of the partnership is the sale of the Geely EX5, an electric SUV of similar dimensions to the Skoda Elroq, through dealerships in Renault’s network. So far, these vehicles have been imported from China, but this and other Geely models will in future be produced at the Renault plant in São José dos Pinhais.
“The partnership we are announcing today with Geely in Brazil marks a decisive step forward in our international strategy,” said François Provost, CEO Renault Group. “It establishes an agile cooperation founded on industrial excellence and technological leadership. Once again, combining our strengths will make us more competitive, more innovative, and more responsive in a fast-evolving automotive market.”
Eric Li, Chairman of Geely Holding Group, added: “Our continued cooperation with Renault in exploring new markets and new opportunities will make for a win-win scenario as both Renault and Geely are able to leverage technology scales on a global level to bring the best products to market.”
As suspected back in August, Renault will also be able to use Geely’s GEA architecture for electric vehicles, plug-in hybrids and range-extender models under the partnership. This will allow Renault to expand its range of zero- and low-emission vehicles for the Brazilian market. According to media reports from August, the first jointly developed model is expected to be an SUV available as both a fully electric and a plug-in hybrid version.
Geely’s investment in Renault do Brasil marks the third joint project between the two automakers. In 2022, the Chinese group acquired a 34 per cent stake in Renault Korea Motors, where hybrid and combustion-engine vehicles are the focus. In addition, Renault and Geely jointly operate the Horse Powertrain company with oil group Aramco, focusing on combustion engine technology.
This article was first published by Florian Treiß for electrive’s German edition.
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