Renault’s new powertrain development entity, Horse, is betting on the viability of internal combustion engines and hybrids until at least 2040. The French automotive giant calculates that 50% of all car sales will still have an ICE by then. Lubricant manufacturers could see the announcement as respite from EVs’ ever-growing market share, especially in Europe.
A 50-50 joint venture agreement with Chinese carmaker Geely will be inked in a few weeks. Saudi Aramco are expected to throw some money into the pot, too.
Initially, Renault’s side of Horse is producing with a workforce of 9,000 at eight manufacturing sites and three R&D centers, according to Automotive News. Ultimately, there will be 19,000 people at 17 production locations and five R&D centers.
Horse’s target output is 5 million drivetrains yearly when Geely joins operations, up from the current 3.2 million. Renault will supply its own marques, Dacia, Nissan and Mitsubishi. The company anticipates third-party sales expects in future.
The factories will produce conventional ICEs, transmissions and hybrid systems. In addition, engine technology for alternative fuels such as e-fuels, hydrogen, ethanol and LPG are also on the cards.
“It’s an interesting and logical step, because manufacturers can’t really afford nor justify financially the development of a technology that is being phased out,” said Nick Augusteijn, an automotive journalist based in Turkey told Electric Vehicles InSite.
Renault also created Ampere as a separate France-based EV company.
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