Lately there has been a lot of talk about the growth of the presence of Chinese brands in the European auto market. Among the realities more active there certainly Geely who recently took 7.6% of Aston Martin. Group that in recent years has also acquired control or important equity investments in reality; like Volvo and Lotus.
Now, the Chinese Group has taken another step forward in its growth strategy. Indeed, it has announced two important new agreements with European manufacturers. The first with Volvo which already has; control and the second with Renault .
THE AGREEMENT WITH VOLVO
Let's go into the details of the new agreement with Volvo. According to the disclosure, Volvo will ceder & agrave; its 33% stake in Aurobay to Geely Holding . The sale is; another important step in Volvo's transformation project that aims to become a 100% electric brand.
Aurobay, we recall, & egrave; a joint venture created between Volvo and Geely to manage the development of internal combustion engines. The activities had been brought together within it; by Powertrain Engineering Sweden. This means that Volvo & egrave; the first car manufacturer to abandon the technology of traditional engines .
Thanks to this sale, the manufacturer will be able to; focus even more & ugrave; on its electrification strategy. However, throughout the transition period, Aurobay will remain & agrave; a strategic partner of Volvo and will be; the only supplier of endothermic/hybrid engines.
The economic terms of the transaction were not disclosed. The proceeds from the sale will be used to transform Volvo into a fully electric brand.
AGREEMENT WITH RENAULT
Geely and Groupe Renault have signed a non-binding framework agreement to create a joint venture venture to develop and produce high efficiency hybrid and endothermic engines . With this framework agreement, Geely and the Renault Group will respectively hold 50% of the shares of the new company.
According to what has been said, the new company will become; also a global powertrain supplier. At the time of launch, this new company & agrave; will have to supply several industrial customers, including Renault, Dacia, Geely Auto, Volvo Cars, Lynk & amp; Co, Proton, as well as & eacute; Nissan and Mitsubishi Motors Company. The partnership could later supply engines to other manufacturers as well.
The joint venture will be able to do so. rely on 17 powertrain plants on 3 continents, with a total of around 19,000 employees. It will have a capacity combined of over 5 million transmissions and internal combustion engines per year, hybrids and plug-in hybrids, to serve over 130 countries and regions. The framework agreement should lead to completion of the project in 2023.
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