Geely, Renault in talks over sales, manufacturing deals in Brazil, sources say

French automaker Renault and its Chinese partner Geely (0175) plan to announce a deal later this month on expanding their cooperation to Brazil, three sources said, as they seek new growth markets amid broadening global trade wars.

The two firms created a thermal engine joint venture last year and have since also started selling cars produced in a jointly owned factory in South Korea.

The deal would also see Geely taking a minority stake in Renault Brazil and using the latter's Curitiba plant to assemble vehicles there, the two sources said. It was not immediately clear how big the potential investment would be.

Renault and Geely declined to comment. The plan for Geely to build its presence in Brazil by selling exported cars via Renault's retail network has not previously been reported. Les Echos had earlier outlined their talks on investment and local production.