A Renault and the Chinese partner Geely They plan to announce an agreement later this month involving companies’ cooperation in Brazil, sixth largest vehicle market in the world, three sources told Reuters.
The two automakers created a joint venture Motors last year, called Horse Powertrain, and since then they have also started selling cars produced in a joint factory in South Korea.
Now, companies are planning to further expand the partnership, involving operations in Brazil. The idea is that Geely use Renault’s dealership network in the country this year to start sales of vehicles from its own exported brand from China, two of the sources said.
Negotiations take place at a time of rapidly expanding Chinese automaker market share in the country, mainly through imports of electric and hybrid vehicles, something that has made traditional automakers evaluate.
In addition to Renault, Stellantis formed a partnership with Chinese Leapmotor for electric vehicle sales in Brazil and Chile, an initiative that is due to be launched in April.
Geely’s agreement with Renault also provides that the Chinese group will have a minority stake in Renault do Brasil, and can use the French automaker’s factory in São José dos Pinhais (PR) to set up vehicles in the country, both sources said. It was not immediately clear how much Geely’s potential investment will be in Brazil’s Renault.
Continues after advertising
Sought in Brazil, Renault cannot comment on the subject immediately. International representatives of the French automaker and Geely did not speak.
