In an effort to further solidify their strategic alliance, the Renault Group and Geely Holding Group have announced a framework agreement that will increase their strategic cooperation in the manufacturing and marketing of zero and low emission vehicles through Renault do Brasil.
Geely will invest in Renault do Brasil as a minority shareholder under the terms of the deal, giving Geely Holding access to resources for localised production, sales, and services.
This agreement would allow Geely Holding and Renault to produce these brand-new cars alongside the present Renault lineup at the two state-of-the-art production facilities of the Renault Group’s Ayrton Senna Complex in São José dos Pinhais, Paraná.
Regarding sales, Geely Holding’s line of zero and low emission car products would be distributed in Brazil by Renault do Brasil. As a result, Geely Holding would gain from Renault’s advantages and business acumen, hastening the group’s growth in Brazil, the primary South American car market.
“The Renault Group and Geely have already made significant progress together: we successfully launched a joint venture in Korea and, with Horse, we have designed a world leader in powertrain technology,” stated Luca de Meo, CEO of the Renault Group. “We have developed a productive working relationship and trust together. We want to take advantage of these fantastic resources with this new partnership in Brazil. It will enable us to further solidify the Renault brand’s position in this important market and to expand our industrial footprint in the state of Paraná.”
With this new alliance, Geely Holding Group and Renault Group will be able to further support the international growth of their respective brands and establish themselves as major players in Brazil, which accounts for 44% of Latin American vehicle sales.