French car manufacturer Renault and Chinese Geely, owner of Volvo Cars, announced on Tuesday that they have signed an agreement to establish a company that will develop powertrains for hybrid and internal combustion engine vehicles.
Renault and Geely will share ownership equally, and the new company will have 17 engine plants and 5 research and development centers across three continents, employing 19,000 workers.
The goal is to become a global leader in the development, production, and supply of hybrid and internal combustion-based powertrains, according to Renault’s statement.
The company will be registered in the United Kingdom and will have an annual production capacity of up to five million engines of internal combustion, hybrid and plug-in hybrid engines, and transmissions. The transaction is expected to be completed in the second half of the year.
Renault also notes that the Saudi oil giant Aramco, which signed a letter of intent with two companies in early March, is exploring the possibility of a strategic investment in the new company. The investment from the Saudi company would enable research and development of synthetic fuels and next-generation hydrogen technologies, they add in the French company.
