French carmaker Renault and Chinese group Geely will complete the joint venture this month. Through the agreement they will develop and supply combustion and hybrid engines.
At the same time, Saudi Aramaco is expected to announce the signing of a memorandum of understanding to invest in the joint venture. A decision that will confirm Aramco’s March 2023 letter of intent, sources say.
In May 2022, Renault officially announced that it was considering the option of creating two separate entities. One dedicated to the development, production and sale of electric vehicles, based in France. The other dedicated to the development and production of new-generation E-TECH thermal and hybrid engines and gearboxes. In November, Renault and Geely reached an agreement to launch a joint venture. It will supply combustion engines and hybrid technology to their respective brands as well as to other car companies.
The joint venture will be codenamed “Horse” for Renault and “Rubik” for Geely.
Horse and Geely would each own 40% of the joint venture, and Aramco the remaining 20%. Discussions on the exact level of Aramco’s investment are still ongoing.
“Projects are progressing as planned. We will communicate the outcome in due course,” said a Renault spokesperson. A Geely Europe spokesman declined to comment.
The annual turnover of the new joint venture is expected to be €15 billion. The new entity will employ 19,000 people at 22 plants worldwide.
Photo Source: automarket.ro