BOULOGNE-BILLANCOURT (dpa-AFX) - Renault Group and Geely said that they have signed a binding 50/50 joint venture agreement to launch a new powertrain technology company. The new company will include 17 engine plants and 5 R&D centers in 3 continents with 19,000 employees.
The new company aims to become the global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient ICE powertrain, Renault said in a statement.
Renault noted that the joint venture will be jointly led by Renault Group and Geely, with equal board members to formulate and execute strategies and set the direction for the joint venture. An executive team will be based in the headquarters of the new company, which is intended to be established in the UK, to consolidate operations, build on synergies, and define future plans.
The joint venture company aims to have an annual production capacity up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year.
The completion of the transaction is expected to take place in the second-half of 2023.
According to Renault, Aramco, which signed letter of intent with Renault and Geely on March 2, 2023, is evaluating a strategic investment in the new powertrain technology company. Aramco's investment would support the growth of the company and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
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