(CercleFinance.com) – Renault Group says it has signed an agreement with the Chinese manufacturer Geely to create a joint venture, which aims to “become the leader in the next generation of thermal, hybrid and low-emission powertrains”.
The new company will include 17 mechanical plants and five R&D centers on three continents with 19,000 employees. It plans to produce up to five million internal combustion, hybrid and plug-in hybrid transmissions and engines per year.
The joint venture will be jointly controlled by Renault and Geely, who will each hold 50% of the capital. As announced on March 2, Saudi energy giant Aramco is considering a strategic investment in this new venture.
The closing of the transaction is scheduled for the second half of 2023 and remains subject to the usual conditions for this type of transaction, in particular the approval of the competition authorities and in charge of controlling foreign investments.