Renault, the French motor giant, and Geely, the Chinese carmaker, are teaming up to establish a new global company with its headquarters in the UK. This exciting venture will see an investment of up to €7 billion ($7.7 billion; £6 billion) in the development of low-emission petrol, diesel, and hybrid engines. With approximately 19,000 employees across 17 engine factories and five research and development hubs, this partnership aims to consolidate operations, leverage synergies, and define future plans.
Despite the global motor industry’s growing focus on electric vehicles, Renault and Geely remain committed to advancing internal combustion engine (ICE) technologies. The new company, set to launch later this year, will supply engines to renowned car manufacturers such as Volvo, Nissan, and Mitsubishi. Renault’s CEO, Luca de Meo, expressed enthusiasm about this collaboration, stating, “We are proud to join forces with a great company like Geely… to disrupt the game and open the way for ultra low-emissions ICE technologies.” Eric Li, Chairman of Geely Holding Group, shared the vision of becoming a global leader in hybrid technologies, offering low-emission solutions to automakers worldwide.
Additionally, there are plans for Saudi energy giant Aramco, the world’s largest oil and gas company, to potentially join this partnership through a strategic investment. Aramco has been evaluating its approach to lower-carbon technologies due to its significant greenhouse gas emissions. This potential collaboration with Renault and Geely aligns with Aramco’s commitment to investing in sustainable solutions.
The Renault-Geely partnership emerges at a time when electric vehicles are gaining popularity worldwide, including in the UK. However, it is important to note that electric vehicles still tend to be more expensive than their petrol or diesel counterparts. Geely, headquartered in Hangzhou, China, has been actively investing in electric vehicle technology and made headlines a decade ago with its acquisition of the London Taxi Company, which was later renamed the London Electric Vehicle Company. Today, the company’s focus is on developing electric black cabs, with around 5,000 of these vehicles currently operating on the streets of London.
London taxi drivers will undoubtedly be interested in this news as it highlights the ongoing advancements in engine technologies and the commitment to low-emission solutions. The establishment of the new company’s headquarters in the UK further solidifies the country’s position as a hub for automotive innovation and development. As the global motor industry continues to evolve, partnerships like the one between Renault and Geely pave the way for exciting opportunities and advancements in the automotive sector.