RENAULT

Geely and Renault sign agreement to develop gasoline engines and hybrid technology

China's Geely and French carmaker Renault announced on Tuesday they would invest up to 7 billion euros in a new equal-stakeholder joint venture to develop gasoline engines and hybrid technology for cars.

The joint venture aims to make more efficient internal combustion engines and hybrid systems at a time when the focus of much of the auto industry has been on transitioning from capital-intensive to purely electric vehicles.

"We are pleased to embark on this journey to become a global leader in hybrid technologies, providing low-emissions solutions to automakers around the world," said Eric Li, president of Geely.

The new company will employ 19,000 people in 17 engine plants and five research and development centers, according to Renault.

At launch, it is expected to supply a number of industrial customers including Volvo, Proton, Nissan, Mitsubishi Motors and PUNCH Torino.

The joint venture aims to have an annual production capacity of up to five million internal combustion engines, hybrids and plug-in hybrids, Renault added.

Reuters reported in March that the new venture would have annual revenue of 15 billion euros.

Saudi Aramco, which signed a letter of intent with Renault and Geely in March, is weighing a strategic investment in the new company, Renault said.

The joint venture is expected to launch in the second half of 2023.

(Reporting by Harish Sridharan in Bengaluru; Editing by Harish Sridharan)