Renault Group announced on Tuesday in a statement that it has officially signed an agreement with Zhejiang Geely Holding Group Co. to launch a new company that will deal with the development of powertrain technology. Each side will hold a 50% stake.
The Saudi Arabian Oil Group (Aramco), which previously signed a letter of intent with the two, is currently "evaluating a strategic investment in this new powertrain technology company," Renault noted. The new business aims to create 17 engine plants, five research and development centers on three continents, and employ 19,000 workers.
"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. It will supply multiple brands worldwide with a complete range of best-in-class powertrains," it was written in the statement. The transaction is expected to be closed in the second half of 2023.
