PARIS, (Reuters) – French automaker Renault and China’s Zhejiang Geely Holding (GEELY.UL) said in a joint statement on Monday that they have reached an agreement to produce and sell zero- and low-emission vehicles in Brazil.
Renault said “Renault do Brasil” would welcome Zhejiang Geely as a new partner, and that joining the venture will enable the Chinese company access to the Renault Group’s Ayrton Senna Industrial Complex in Sao Jose dos Pinhais, located in the southern state of Parana.
“Renault do Brasil” will become a distributor of the Zhejiang Geely portfolio of zero- and low-emission vehicle products in the country through its existing distribution network.
Reuters reported last week that the two firms were set to announce a deal on expanding their cooperation to Brazil as they seek new growth markets amid broadening global trade wars.
Geely Automobile in which Zhejiang Geely holds an indirect 39% stake, said in a Hong Kong stock exchange filing on Tuesday that it was not a party to the agreement and is neither partnering with nor providing any financing to Zhejiang Geely.
“Given the potential synergy from the collaboration with Renault and the significant potential of the Latin American market, the group is actively exploring different options to be involved in the proposed transaction,” Geely Automobile said.
Reporting by GV De Clercq in Paris and Sameer Manekar in Bengaluru; Editing by Benoit Van Overstraeten and Sherry Jacob-Phillips
