Further details have emerged about the engine joint venture between Geely, Renault and Saudi Aramco, revealing that nine of the factories to be used by the venture will come from Geely.
Unnamed sources have revealed that of the 17 plants that the joint venture will use, eight will come from Renault in Latin America, Europe, and Turkey, while the remaining nine will be from Geely. Of these, eight will be located in China while the ninth is located in Skovde, Sweden, currently operated by the combustion engine unit of Volvo Cars, dubbed Aurobay.
In addition, it has been revealed that the joint venture will have two Geely-Aurobay research and development centers. One will be located in Gothenburg, Sweden, while the other will be in Hangzhou Bay, China. Renault will use three of its R&D centers for the joint venture, located in Latin America and Europe, Reuters reports.
The Renault and Geely joint venture will focus on the development, production, and supply of hybrid powertrains and efficient internal combustion engines. The joint venture will operate a workforce of around 19,000 employees in over 130 countries. It will operate as a standalone global supplier and have the capacity to build up to 5 million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year.
The joint venture will allow the car manufacturers to serve important markets where electric infrastructure is underdeveloped.
Read: Aramco Signs Letter Of Intent To Join Geely And Renault’s Powertrain Company
In early March, it was revealed that Saudi Aramco had signed a letter of intent to become a potential minority shareholder in the joint venture. It is unclear how large Aramco’s stake in the company will be but some reports have suggested it could take a 20 per cent stake, meaning that both Geely and Renault would each own a 40 per cent stake.
“This partnership with Aramco will raise our joint powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology,” Renault Group chief executive Luca de Meo said three weeks ago. “Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.”
