Chinese automaker Geely and French automaker Renault have announced a joint venture agreement to develop and manufacture classic internal combustion engines, hybrid powertrains and transmissions. The partners will own the new enterprise in equal shares, and the national oil company of Saudi Arabia Saudi Aramco will become a strategic investor in the project.
The new joint venture between Geely and Renault will include 17 engine factories and five R&D centers on three continents, with a total of 19,000 employees. The planned capacity of the enterprise is up to five million engines and transmissions annually. In addition, the partners are going to produce batteries for hybrid vehicles.
“Faced with today’s problems in the automotive industry, no one can claim to have the tools to solve them alone. Creating breakthrough innovations requires pooling expertise and assets. There is no time to waste when it comes to the global race to decarbonize vehicles, and this is no ordinary thing. Today, we are proud to have joined forces with a great company like Geely to create a new player that is up to the challenge, able to change the rules of the game and pave the way for ultra-low emission ICE technologies,” said Luca de Meo, commenting on the collaboration with Geely, CEO of Renault Group.
Engines and transmissions developed by the new joint venture will be installed in Renault, Geely and their brands, including Volvo, Proton, Nissan and Mitsubishi. Also, the new agreement between the Chinese and French automakers involves joint research and development in the field of synthetic fuels and hydrogen fuel cells, which are part of a plan to decarbonize the automotive industry. The partners expect the new facility to become a world leader in the design and manufacture of best-in-class hybrid powertrains and high-performance internal combustion engines.