Renault and Geely to form a joint venture to develop engines and hybrid technologies
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France’s Renault and China’s Geely Automobile Holdings have signed a joint venture (JV) agreement to develop and manufacture more efficient gasoline engines and hybrid powertrains. reported on the Geely website.
“We are excited to begin this journey to become a global leader in hybrid technology, providing low-emission solutions to carmakers around the world,” commented Geely CEO Eric Lee.
The companies will have equal shares in the new joint venture, with management based at the new UK headquarters. The new company will include 17 engine factories and five research and development centers on three continents with 19,000 employees, the report said. The parties expect that the production capacity of the joint venture will be 5 million internal combustion engines, hybrid and plug-in hybrid transmissions per year.
In addition, the Saudi oil company Saudi Aramco, which in March signed an agreement of intent with Geely and Renault, is now evaluating the volume of strategic investments in the joint venture. Investments, Geely noted, will contribute to key research and development in the field of synthetic fuel solutions and next-generation hydrogen technologies.
The completion of the transaction will take place, as expected, in the second half of 2023. After the launch, the joint venture will supply products, including Volvo CarsProton, Nissan, Mitsubishi Motors Company and PUNCH Torino.
How clarifies Reuters, Renault and Geely are investing up to $7.7 billion in the joint venture, and the new venture is expected to generate $16.5 billion in annual revenue.
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