BEIJING, Aug 9 (Reuters) – France’s Renault SA (RENA.PA) is looking to revive business in China by forming a hybrid vehicle joint venture with Geely Holding Group (GEELY.UL), sources said, a year after it ended its previous operation in the world’s largest car market.
According to two people familiar with the discussions and documents seen by Reuters, the two companies have signed a “framework agreement” to set up the joint venture. An announcement about the possible joint venture could be made as early as Monday.
The new venture would make and sell Renault-branded petrol-electric hybrid cars in China using Geely’s technologies, supply chains and manufacturing facilities while Renault would focus on sales and marketing.
As part of the partnership, the two automakers also agreed to explore a joint localisation of Geely’s Lynk & Co-brand hybrid vehicles in South Korea where Renault has been manufacturing and selling cars for more than two decades.