China’s Geely said on Friday it and its parent Geely Holding would take a combined 26.4% stake in a joint venture controlled by its French partner Renault as the two seek to produce and sell cars jointly in Brazil.
The two automakers have entered an agreement that would see Renault take 73.57% in the venture that would focus on producing and distributing cars in Brazil under the Renault and Geely brands. It is also due to make and distribute light commercial vehicles under the Renault brand to “attract new customers”, according to a filing by Geely Auto.
The deal is subject to regulatory approvals, the company said.
Geely and Renault first announced their partnership to produce and sell zero- and low-emission vehicles in Brazil in February.
The Brazilian partnership builds on the two companies’ thermal engine joint venture, headquartered in London, and their jointly owned manufacturing plant in South Korea.
Reuters
