The automakers Renault and Geely have formed a joint venture to develop engines for petrol and hybrid vehicles, with a combined investment from the partners of up to €7 billion ($7.7 billion).
On Tuesday, Renault announced plans to establish a new business with its Chinese counterpart in order to produce up to five million internal combustion, hybrid, and plug-in hybrid engines and transmissions annually.
The new firm “aims to become the leader in next-generation hybrid and highly efficient powertrain solutions to meet worldwide demand for the years to come,” Renault said in a statement.
The complete system, including the engine, that makes it possible for a vehicle to move is referred to as the “powertrain”.
In addition to providing engines and other components to their own vehicles and other international automakers like Volvo, Nissan, and Mitsubishi, Renault and Geely anticipate the new business to do the same.
Renault revealed that The firm, will have 17 factories with its five modern R&D centers in three contents and is expected to employ 19,000 people.
The new business will receive a combined investment of up to €7 billion from the French and Chinese automakers, according to Geely’s filing with the Hong Kong stock exchange.
The greatest oil producer in the world, Saudi Aramco, is also considering participating in the joint venture, according to Renault, who added that the investment is anticipated to be finished before the end of the year.
According to Renault, Saudi Aramco’s investment would promote the startup’s expansion and finance research into synthetic and hydrogen fuels, all of which are essential to decarbonizing the automotive industry, including internal combustion engine vehicles.
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