France’s Renault and China’s Geely announced plans on Tuesday for the joint production of gasoline and hybrid engines, adding to other partnerships between manufacturers aimed at supporting transition costs in the auto sector.
The consortium plans to build 17 factories, with an annual production capacity of five million engines, and five research and development centers on three continents. This company will employ 19,000 people, the companies said in a statement.
The construction companies did not detail the value of the investment, but said that each partner will own half of the project.
The consortium aims to supply brands owned or linked to Renault and Geely, including Nissan, Mitsubishi, Volvo Cars, Renault, Dacia, Geely Auto, Lynk & Co. and Proton, the companies said.
The venture also aims to supply third-party brands in a second phase. Global automakers are forming joint ventures to share the high costs of developing electric vehicles and more efficient gasoline engines as part of the industry’s transition to meet global environmental goals.
The Renault-Geely deal “will enable the creation of a world leader in hybrid technologies, to provide advanced and highly efficient solutions for construction companies around the world,” Eric Li, chairman of Geely Holding Group, said in a statement.
Source: TSF
