Published -July 12th, 2023 @ 09:30 AM (GMT+2)
Renault Group has undertaken significant strides in 2023. From entering into a liquidity agreement with Exane BNP Paribas to sealing a joint venture agreement with Geely, Renault is pushing boundaries to remain at the forefront of global automobile industry innovation.
Renault's Strategic Liquidity Moves
In the first half of 2023, Renault SA entered into a liquidity agreement with Exane BNP Paribas. This resulted in 24,346 purchase transactions for 4,816,809 shares totaling EUR 177,991,536 and 32,349 sale transactions for 4,898,720 shares and EUR 180,777,511. The agreement operates under the provisions of the French Financial Markets Authority’s decision n°2021-01.
Renault-Geely Joint Venture
Renault and Geely signed a joint venture agreement to launch a next-generation powertrain technology company. Each party holds a 50% stake, with the aim to become a global leader in hybrid and efficient powertrain solutions. Aramco is also evaluating a strategic investment in this new company, with a focus on synthetic fuels and next-gen hydrogen technologies.
The joint venture includes 17 engine plants, 5 R&D centers, and 19,000 employees spread across three continents. The company aims for an annual production capacity of up to five million hybrid, internal combustion, and plug-in hybrid engines and transmissions. They intend to supply these powertrains to multiple brands worldwide.
Anticipating Future Expansion
The company is anticipated to be established in the UK, with operations handled from operational centers in Madrid and Hangzhou Bay. Both Renault Group and Geely will transfer Intellectual Property to these centers for future powertrain technology development. The company is expected to supply multiple industrial customers at launch, with plans to expand its services to third-party car brands.
Renault's Stock Performance
As of July 12, 2023, Renault SA's current price is €38.06 with a market cap of 11.42B EUR. Since June 12, 2023, the stock has seen an increase of 12.21%, and year-to-date, it has increased by 13.95%.
The joint venture between Renault and Geely marks a significant stride towards leading powertrain technology. It serves as a testament to the collective effort needed for breakthrough innovations in the automotive industry. The financial solidity of Renault adds a promising edge, boosting confidence in the potential success of this venture.
Renault Group's dynamic moves in 2023 underscore its commitment to innovation, sustainability, and expansion. By forging strategic partnerships and harnessing next-gen technologies, Renault is not only redefining its own trajectory but also shaping the future of the global automotive industry.
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