China-based Geely Holding Group and French Renault signed an agreement to set up a 50/50 joint venture to develop and produce powertrains for hybrid and internal combustion engine vehicles. Saudi Arabian oil company Aramco is evaluating an investment in the new venture.
According to Reuters, Geely and Renault will invest up to EUR7 billion (US$7.71 billion) in the joint venture. The pair signed a framework agreement for the collaboration in November 2022.
A joint announcement said the two carmakers will run two operational centers in different regions. Renault will operate the one in Madrid, Spain, while Geely is responsible for the facility in Hangzhou Bay, China. The new company will be headquartered in the UK.
Renault said the JV plans to make 5 million ICE, hybrid and plug-in hybrid engines and transmissions, according to Reuters. Geely and Renault said the new company will supply Volvo Cars, Proton, Nissan, Mitsubishi Motors and PUNCH Torino besides themselves.
In the future, the JV will provide end-to-end powertrain technologies to third-party car brands, they added.
Aramco signed a letter of intent with Renault and Geely in March 2023. The Saudi company is evaluating a strategic investment in the new powertrain company, according to the announcement. Investment from Aramco would support the JV's R&D effort in synthetic fuel solutions, including e-fuels, and next-generation hydrogen technologies.
