It’s refreshing to hear that China’s Geely Automobile Holdings and Renault SA in France plan to invest up to $7.71 billion in an equal joint venture to develop more efficient internal combustion engines (ICE) and hybrid systems. Almost all of the banter lately involves the transition to electric vehicles.
The venture expects to hire 19,000 people at 17 engine plants and five research and development hubs, supplying such customers as Volvo, Proton, Nissan, Mitsubishi Motors, and PUNCH Torino.
According to Renault, they’re estimating an annual production capacity of up to five million internal combustion, hybrid, and plug-in hybrid engines and transmissions. The new venture is expecting a $16.53 billion annual revenue. Saudi Aramco is currently evaluating a strategic investment of up to 20% of the new company,
The joint venture is expected to be launched in the second half of 2023.