Clear: Volvo’s owner is forming a joint venture with the French company

GB previously wrote about the deal between Renault Group and Geely Holding, where Saudi Aramco also wants to become an owner in March. The signed letter covers 17 engine factories worldwide, five development centers and a production capacity of five million car engines per year. A new major motor company called PWT includes Aurobay, where Volvo Cars previously owned with its Skövdefabrik. As Volvo Cars has fully invested in electric cars, Geely owns the internal combustion engine business, i.e. petrol engines.

According to Arobay Sweden, the company employs nearly 500 people in Lindholmen and 1,300 in Skövdeinalkangen.

Headquartered in England

When the deal was signed between the three parties in March, Stefan Lundin at Geely Sweden said it was still an agreement of intent. But now Renault and Geely have signed a binding agreement in the new company, in which they will each own half – with Saudi Aramco still in the process of participating. The new company will have a board, half of which will be appointed by Renault and half by Geely.

The company’s offices will be in Madrid and Hangzhou Bay, respectively — in Zeely’s home province of Zhejiang, south of Shanghai. However, the company’s head office will be shifted to Great Britain, according to a press release from the companies.

Customers for the new major motor company initially included Renault, Dacia, Geely, Volvo, Proton, Nissan and Mitsubishi. In future, the company will sell petrol and hybrid engines to brands outside the Renault and Geely spheres.

Investment in synthetic fuels

If Aramco joins, the oil company will focus on research and development of synthetic fuel solutions and next-generation hydrogen technologies – fuels that produce lower carbon dioxide emissions than the company’s current products.

– We are proud to join forces with a successful company like Geely to start a new business that is ready to take on the challenge and change the playing field and pave the way for combustion engines with very low emissions, says Luca, Renault Group CEO. Di Meo in a statement.

“We are excited to embark on our journey to become a global leader in hybrid technologies and to be able to provide low-emission solutions to car manufacturers around the world,” Li Shufu, owner and founder of Geely, said in a statement.

read more: Skövde and Gothenburg are affected when the Saudi oil company Geely invests

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