Renault Group and Geely set up a joint venture without the participation of Saudi Aramco – Kommersant

Renault Group and Geely signed an agreement to establish a joint venture that will develop and manufacture gasoline engines and hybrid technologies. This agreement was the result of plans made public by the parties in March. However, Saudi Aramco, which also planned to enter this joint venture as a minority shareholder and signed an agreement of intent in March, has not yet made a final decision and is studying possible investment options.

According to the agreement signed today, July 11, Renault and Geely each receive 50% in the joint venture. The new company will be headquartered in the UK and will have regional offices in Madrid and Hangzhou before it opens. The company, which has not yet received a name, will have 17 factories, 5 engineering and technology centers on three continents and 19,000 employees. Production capacities allow to produce more than 5 million engines annually, both for internal combustion and for hybrid vehicles.

The transaction is expected to close in the second half of the year, subject to the receipt of all necessary permits from the antimonopoly authorities and investment regulators. If Saudi Aramco decides to join the project, its investment will support the growth of the new company and contribute to the development of next-generation synthetic fuels and hydrogen technologies, the parties to the agreement say. Then Saudi Aramco will become the first major oil company to invest in the automotive business.

Alena Miklashevskaya