Renault of France and Geely of China have announced plans for a jointly owned venture to produce gasoline-powered and hybrid powertrains, adding to a series of partnerships between global automakers to share soaring technology costs.
The venture will have 17 plants with annual production capacity of 5 million powertrains, 5 research and development centers on three continents and some 19,000 employees, the companies said. They gave no financial terms but said each partner will own half of the venture.
Related: Geely Acquires 34% of Renault Korea
It will supply brands owned by or linked to Renault and Geely including Nissan, Mitsubishi, Volvo Cars, Renault, Dacia, Geely Auto, Lynk & Co. and Proton, the companies said. They said it might later supply third-party brands.
Global automakers have been forming partnerships over the past decade to share the multi-billion-dollar development costs of electric vehicles and more efficient gasoline engines. Eric Li, chairman of Geely Holding Group, said in a statement:
“The Renault-Geely agreement will enable the creation of a global leader in hybrid technologies to provide highly efficient advanced solutions for automakers around the world.”
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