Renault and Geely have entered into a $8.8 billion joint venture agreement to establish a new company focused on combustion engine and hybrid powertrain technologies. The venture aims to supply 5 million engines annually and is scheduled to commence operations in 2023.
Saudi Aramco is contemplating an investment in this new company, which would contribute to the advancement of its low-emissions powertrain technology.
The joint venture is a significant step for Renault and Geely, indicating their dedication to the ongoing development of internal combustion engines (ICEs), despite the industry’s shift towards electric vehicles (EVs).
The involvement of Saudi Aramco in this investment carries significance. It demonstrates the oil giant’s interest in future low-emissions powertrain technologies. Aramco, a major player in the global oil market, supports the joint venture. This reflects its preparation for an era where EVs become increasingly mainstream.
The joint venture formed by Renault, Geely, and Saudi Aramco highlights the changing dynamics of the automotive industry. Traditional automakers are seeking strategies to remain competitive with the transition towards EVs. This collaboration allows Renault, Geely, and Aramco to combine their resources and expertise. They aim to develop innovative powertrain technologies that cater to the evolving demands of the future.
