China’s Geely and France’s Renault will complete the creation of a joint venture to produce internal combustion engines and hybrid engines by the end of February, according to two sources cited by Reuters.
The source added that Renault and Geely Automobile could get 40% shares in the joint venture, and the remaining 20% would be given to Saudi Aramco. The goal of the joint venture is to achieve an annual turnover of 15 billion euros and employ 19 000 employees in 22 locations around the world, mainly in Spain, Romania, Turkey, South America and China.
The joint venture Renault-Geely will supply products from the group’s brands and third-party manufacturers. Two sources reported that auto manufacturers and other industries have “expressed interest” in the new supplier, as the transition to “electrification” will not happen so quickly in many markets outside Europe. Many experts believe that the ban on internal combustion engines in the EU will not occur until 2035, as previously expected.
Geely and Renault announced the creation of a new joint venture last summer. Both sides will create a new generation of efficient and energy-saving hybrid power systems, and the headquarters will be located in Britain.