Renault and China’s Geely said they have agreed to launch a new, equally held joint venture that will supply gasoline engines and hybrid technology to the brands they own as well as to other automakers.
While it was not immediately clear whether the venture represents a step towards even closer collaboration on combustion engine cars between the two companies, it marks a critical step in Renault’s complex restructuring.
The joint venture will employ 19,000 people at 17 powertrain factories and three research and development hubs, the companies said. They expect to reach a final agreement and launch the new company in 2023.
Renault and Geely will each hold 50 percent, the companies said in a statement on Tuesday that did not detail other financial terms.
The joint venture will be based in London, a person with knowledge of the terms told Reuters.
Renault and Geely said they expect the joint venture will supply internal combustion engines and hybrid powertrains to Nissan and to Mitsubishi Motors, the junior partner in Renault’s alliance with Nissan.
They said it would have the capacity to supply about 5 million engines and hybrid systems per year once operational.
Hani Joudi 
