Renault and Geely Group signed an agreement that will lead to creation of an equal joint venture to develop and manufacture highly efficient hybrid and endothermic engines. So, after the non-binding agreement that the two companies made in November 2022, comes the signing to create this new company, in which Aramco can also invest.
Aramco’s investment will support the growth of the new company and will support the research and development of synthetic fuel and hydrogen-based technology solutions.
Renault and Geely Group they will have an equal number of members on the board of directors a joint venture that will initially be able to rely on two operational headquarters: Madrid for the French and Hangzhou Bay for the Chinese. In addition, the headquarters will be set up in the UK. Groupe Renault and Geely will transfer their expertise to operations centers, allowing them to be fully autonomous in developing future power technologies that can meet all market expectations.
The new company will be able to count on 17 engine factories and 5 research and development centers on 3 continents with a total workforce of 19,000 people. New company first will have as clients Renault, Geely, Volvo, Proton, Nissan, Mitsubishi Motors Company and PUNCH Turin. In the future, the joint venture aims to expand the range of its customers.
As part of the deal, Geely and Renault will enter into a long-term purchasing agreement with a joint venture to supply internal combustion, hybrid and plug-in hybrid engines for passenger cars. In addition, Renault will also purchase powertrains and batteries for light commercial vehicles. The transaction is expected to close in the second half of 2023. Luca de MeoRenault Group CEO commented:
Faced with the automotive challenges of today, no one can claim to have all the solutions alone. Finding breakthrough innovations requires pooling skills and resources. When it comes to the global race to decarbonize road transport, there is no time to waste. Today, we are proud to have joined forces with a great company like Geely to create a new player capable of revolutionizing the market and paving the way for ultra-low emission ICE technology. I want to thank Eric Li Shufu for the trust: now we are ready to move forward!
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.