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PaperclipPerfector  15hr ago (text post)   146 thread views

Transnational Thursday for October 16, 2025

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Interesting article: Renault–Geely engine unit speeds up as EV shift stutters

When French carmaker Renault and China's Geely carved out their combustion-engine operations in 2022, the venture looked like a footnote to an outdated technology. Now, Horse Powertrain has a new lease of life.

The joint venture aims to become the world's top engine maker by 2035, betting that legacy carmakers pivoting to EVs will still need suppliers to make combustion engines for them as the energy transition stutters.

Pitching itself as a one-stop shop for automakers, producing everything from hybrid engines to the small combustion units that extend range in plug-in EVs, Horse is targeting annual revenue of 15 billion euros (17 billion dollars) by 2029, up 80 % from 2024, according to a Reuters analysis.

Giannini says Horse is currently the world's no. 3 engine maker, with 17 engine and transmission factories previously run by Renault, Geely Holding, and Geely unit Volvo Cars, including eight in China.

Horse's [CEO Matias] Giannini expects 50 % of new cars to be EVs in 2040. Others predict more. But, even then, tens of millions of new hybrid cars will still need engines.

"Let automakers concentrate on their transition to EVs… while we support them with highly efficient hybrid engines and transmissions," Giannini said.

Renault expects to save 2 billion euros in engine development by 2030 via outsourcing to Horse, and Giannini is pitching those savings to new customers.

Horse currently produces over eight million engines and transmissions annually for more than 15 automakers, including Renault, Dacia, Volvo Cars, Nissan, Mitsubishi, and Mercedes-Benz.

According to a source close to the matter, Horse is pursuing about 100 projects across all its products and markets—from cars to boats, construction equipment, and drones.

Geely and Renault own 45 % of Horse each. Oil producer Saudi Aramco owns the remaining 10 %.

Horse itself is betting on new technologies, including plug-in hybrids (PHEVs). It has also launched a suitcase-sized combustion engine for extended-range electric vehicles (EREVs), which use a small engine to boost an EV's range.

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