French automaker Renault is in discussions with Chinese partner Geely to expand their collaboration into Brazil, as per a report by Reuters citing three sources. The two companies, who previously established a joint venture focused on thermal engines in 2024, have already commenced selling vehicles manufactured in a jointly-owned South Korean factory. The sources familiar with the matter revealed that the companies are aiming to announce their Brazil expansion later this month.
As part of the proposed deal, Geely would utilize Renault’s Brazilian retail network to market Geely-branded vehicles exported from China as early as this year. Additionally, Geely is expected to acquire a minority stake in Renault Brazil and utilize the Curitiba plant for vehicle assembly. This move aligns with Renault’s broader strategy to reduce its reliance on the European market.
For Geely, this partnership presents an opportunity to diversify beyond its primary export market, Europe, amidst increasing trade barriers imposed by countries like the US, Canada, and the European Union on Chinese-made vehicles. While technical aspects are still being deliberated, there is potential for Geely to establish a multi-energy platform at the Renault plant to manufacture a variety of vehicles, including gasoline, hybrid, and electric vehicles, according to one of the sources.
In a recent development, Geely reportedly signed a preliminary agreement with Pakistan’s HRL Engineering Group and Capital Smart Motors (CSM) to assemble and sell its Farizon commercial vehicles in the country. This indicates the company’s proactive approach towards expanding its global footprint and diversifying its market reach.
The potential collaboration between Renault and Geely in Brazil signifies a strategic move for both companies to tap into new markets, leverage each other’s strengths, and navigate the evolving landscape of the automotive industry. Stay tuned for further updates on this evolving partnership and its implications for the global automotive sector.
