Renault and Zhejiang Geely Partner for Low-Emission Vehicle Production in Brazil
Renault and Zhejiang Geely are set to produce low-emission vehicles in Brazil, leveraging Renault’s existing facilities and distribution networks. This partnership is part of a broader strategy to explore growth opportunities in response to changing global trade dynamics, despite Geely Automobile’s non-involvement in the financing of the agreement.
Renault and Zhejiang Geely Holding have announced a collaboration to manufacture zero- and low-emission vehicles in Brazil. The deal allows Zhejiang Geely access to Renault’s Ayrton Senna Industrial Complex in Sao Jose dos Pinhais, Brazil. This partnership positions Renault do Brasil to distribute Geely’s eco-friendly vehicle lineup using its existing network in the region.
This announcement comes amid challenging global trade conditions, prompting both companies to explore growth opportunities in new markets. Reports indicated that the firms were on the verge of finalizing this deal to enhance their joint operations. Notably, Geely Automobile clarified in a Hong Kong filing that it is not directly involved in this agreement, nor is it financing the new partnership. However, it aims to explore its participation in this venture given the Latin American market’s potential.
The agreement between Renault and Zhejiang Geely marks a significant step towards enhancing low-emission vehicle production in Brazil. By leveraging Renault’s established infrastructure and distribution channels, Geely aims to tap into the promising Latin American market. The collaboration reflects a strategic move in response to evolving global market dynamics, focusing on sustainability and innovation.
Original Source: www.tradingview.com
