French automotive giant Renault and Chinese carmaker Geely are launching their new global company, which would employ around 19,000 people.
The engine company will have its headquarters in the UK. The companies have committed up to €7 billion ($7.7 billion; £6 billion) to develop low-emission petrol, diesel, and hybrid engines.
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With 17 engine factories and five research and development hubs, the venture aims to supply engines to automakers, including Volvo, Nissan, and Mitsubishi.
The UK base will be a hub for consolidating operations, leveraging synergies, and shaping future plans. Renault CEO Luca de Meo said: “We are proud to join forces with a great company like Geely… to disrupt the game and open the way for ultra low-emissions ICE [internal combustion engine] technologies
Geely Holding Group Chairman Eric Li said it intended “to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world.”
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The companies also revealed the potential involvement of Saudi energy giant Aramco, the world’s largest oil and gas company, in the joint venture. The collaboration between Renault and Geely comes amid the rising demand for electric vehicles globally, including the UK market.
While electric vehicles continue gaining traction, their higher cost than traditional petrol or diesel cars remains a challenge.
Geely, based in Hangzhou, has invested in electric vehicle technology, including acquiring the London Electric Vehicle Company (formerly London Taxi Company) in 2010. The company has since developed London’s first electric black cab, with thousands of these vehicles now in service on the streets of the capital.
