Geely and Renault are investing $82 billion in combustion engines

Geely and Renault unite with the former internal combustion engine maker of Volvo Cars. Together, they are investing $82 billion in combustion engines and hybrid technology. Saudi Aramco will also own the company with 1,800 employees in western Sweden.

Geely and Renault have now signed a binding agreement to own an engine company that includes Aurobay, Volvo’s predecessor engine company. After Volvo Cars invests wholeheartedly in electric vehicles, internal combustion engines have been spun off into a separate company. The new company will be called PWT. In Gothenburg there are 500 engineers working in Lindholmen and 1,300 workers in the assembly plant in Skövde.

Together, the two companies are investing approximately SEK 82 billion in the joint venture, which will develop and produce more efficient internal combustion engines and hybrid systems. The company will have a total of 19,000 employees in 17 factories and five research centers. The main office is in Great Britain, but the new company will have offices in both Madrid and Hangzhou Bay, south of Shanghai. The plan is to sell petrol and hybrid engines to brands other than Renault and Geely’s own brands.

“We are delighted to be able to begin the journey towards becoming a world leader in hybrid technologies and to be able to offer low-emission solutions to vehicle manufacturers around the world,” Geely Owner and Founder Li Shufu says in a statement.

Renault may now get the same engines as Volvo cars.
“Today we are proud to unite with a successful company like Geely to start a new business ready to take on the challenge, change the playing field and pave the way for ultra-low-emission combustion engines,” says Renault Group CEO Luca de Meo in a statement.