(Reuters) -China’s Geely Automobile Holdings (OTC:GELYF) and French car maker\u00a0Renault\u00a0SA (OTC:RNLSY) on Tuesday said they will invest up to 7 billion euros ($7.71 billion) in a new equally held joint venture to develop gasoline engines and hybrid technology for automobiles.<\/p>\n\n\n\n
The JV is aimed at manufacturing more efficient internal combustion engines and hybrid systems at a time when the focus of much of the automobile industry has been on the capital-intensive transition to purely electric vehicles.<\/p>\n\n\n\n
“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,” said Eric Li, Geely Holding Group chairman.<\/p>\n\n\n\n
The new company will employ 19,000 people at 17 engine plants and five research and development hubs, Renault (EPA:RENA) said.<\/p>\n\n\n\n
At launch, it is expected to supply to multiple industrial customers including Volvo, Proton, Nissan (OTC:NSANY), Mitsubishi Motors (OTC:MMTOF), and PUNCH Torino.<\/p>\n\n\n\n
The JV aims to have an annual production capacity of up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions, Renault added.<\/p>\n\n\n\n
Reuters reported in March that the new venture will see 15 billion euros ($16.53 billion) in annual revenue.<\/p>\n\n\n\n
Saudi Aramco\u00a0(TADAWUL:2222), which signed a letter of intent with Renault and Geely in March, is evaluating a strategic investment in the new company, Renault said.<\/p>\n\n\n\n
The Saudi oil producer has been involved in advanced discussions to take a stake of up to 20% in the JV, sources said earlier this year.<\/p>\n\n\n\n
Big oil firms have worked with automakers to develop sustainable fuels and hydrogen engines in recent years. But a deal here would make Aramco the first major oil producer to invest in the car business.<\/p>\n\n\n\n
The joint venture is expected to be launched in the second half of 2023.<\/p>\n\n\n\n
($1 = 0.9079 euros)<\/p>\n