Chinese automaker Geely and Watch Class of Lies OnlineFrench car manufacturer Renault announced on Tuesday their plans to establish a new joint venture with an investment of up to 7 billion euros ($7.71 billion). The JV, which will be equally held by both companies, aims to develop gasoline engines and hybrid technology for automobiles. Eric Li, Geely 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.” Additionally, Saudi Arabian oil producer Saudi Aramco, which previously signed a letter of intent with Renault and Geely in March, is currently evaluating a strategic investment in the new company. If the deal materializes, Aramco would become the first major oil producer to invest in the car business, according to Reuters. The JV expects to achieve an annual production capacity of up to five million internal combustion, hybrid, and plug-in hybrid engines and transmissions, according to Renault. At launch, the company anticipates supplying to various industrial customers, including Volvo, Proton, Nissan, Mitsubishi Motors, and PUNCH Torino, among others. [Reuters]
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