The headquarters of a new international business established by Chinese automaker Geely and French automaker Renault will be in the United Kingdom.
The companies are investing up to €7 billion ($7.7 billion; £6 billion) to create low-emission gasoline, diesel, and hybrid engines.
It will have five centers for research and development in addition to 17 engine manufacturing that will employ roughly 19,000 people.
The agreement is made as the global auto industry focuses on creating electric automobiles.
According to a statement from Renault and Geely, the company will launch later this year and supply engines to car makers such as Volvo, Nissan, and Mitsubishi. “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 [internal combustion engine] technologies,” Renault’s chief executive said.
Eric Li, chairman of Geely Holding Group, further stated that the company intended “to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world.”
The companies added that it was “evaluating a strategic investment” and that Saudi energy behemoth Aramco might join the project.
The world’s largest oil and gas corporation, Aramco, is a significant source of greenhouse emissions contributing to climate change.
Earlier this year, Amin Nasser, president and chief executive of Aramco, announced that the business would increase its investments in low-carbon technologies.
The Renault-Geely agreement comes as demand for electric vehicles, notably in the UK, is rising globally.
Nevertheless, a typical new electric vehicle (EV) is still more expensive than a comparable gasoline or diesel vehicle.
Geely, which has its headquarters in Hangzhou, has been investing in the production of EVs recently.
Ten years ago, in a deal of £11.4 million ($14.8 million), it acquired London Taxi Company, a Coventry-based maker of London black cabs.
The London Electric Vehicle Company was given a new name in 2017 to emphasize its focus on EV technology.
It created the first electric black cab in London, and the city’s streets are currently home to about 5,000 cars.
Source: BBC News