Geely Automobile Holdings, China’s largest privately owned car maker, and Renault SA, France’s second-biggest car maker, have announced a joint venture to invest up to 7 billion euros in developing and producing gasoline engines and hybrid technology for automobiles.

The joint venture, which will be equally owned by the two companies, will aim to become a global leader in hybrid technologies, offering low-emission solutions for automakers around the world.

The joint venture will leverage the expertise and resources of both companies, as well as their existing industrial partnerships, to manufacture more efficient internal combustion engines and hybrid systems.

The joint venture will have 19,000 employees, 17 engine plants and five research and development hubs in China, France, Sweden, Turkey and Romania. It will supply engines and transmissions to multiple industrial customers, including Volvo, Proton, Nissan, Mitsubishi Motors and PUNCH Torino.

The joint venture will have an annual production capacity of up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions, Renault said.

Eric Li, Geely Holding Group chairman, said: “We are pleased to be embarking on this journey to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world.”

Luca de Meo, Renault Group CEO, said: “This joint venture is a strategic move that will allow us to strengthen our competitiveness in the field of hybrid engines and transmissions. It will also enable us to accelerate our electrification strategy and offer more affordable and sustainable mobility solutions to our customers.”

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