The two automakers are joining their ICE and hybrid operations
Oil corp Aramco will contribute to synthetic fuel development
Renault and the parent company of Volvo have just announced a new joint venture. The French automaker and Geely will work together to develop their next generation of hybrid and, yes, combustion-powered engines.
The joint venture between Renault and Geely will see each one have a 50 percent stake in the new company. The company will own 17 engine factories and five research and development factories across three continents. Renault said it hopes that the venture will be able to supply other OEMs and potentially welcome new partners.
“Facing today’s automotive challenges, no one can claim to have all the solutions, alone. Coming up with breakthrough innovations requires to combine expertise and assets. When it comes about the global race for decarbonizing road transports, there is no time to lose, and it will not be business as usual. Today, we are proud to join forces with a great company like Geely to set up a new player, up to the challenge, able to disrupt the game and open the way for ultra-low emissions ICE technologies,” said Renault Group CEO Luca de Meo.
The new group is expected to supply Renault, Geely, Volvo, Proton, Nissan, and Mitsubishi. It will build more than 5 million combustion engines per year. Saudi oil company Aramco will also be part of the venture. The announcement said that Aramco’s investment would contribute to research in synthetic fuels and hydrogen technologies.
The joint venture deal is expected to be completed this year.