The companies will invest up to €7 billion ($7.7 billion; £6 billion) to develop low-emission petrol, diesel, and hybrid engines.

It will employ around 19,000 people across 17 engine factories and five research and development sites.

The agreement comes as most of the global automobile industry shifts its focus to the development of electric vehicles.

According to Renault and Geely, the new firm would utilize its UK headquarters to “consolidate operations, build on synergies, and define future plans.”

The company will be established later this year and will offer engines to automobile manufacturers such as Volvo, Nissan, and Mitsubishi.

According to Renault and Geely, the new firm would utilize its UK headquarters to “consolidate operations, build on synergies, and define future plans.”

The company will be established later this year and will offer engines to automobile manufacturers such as Volvo, Nissan, and Mitsubishi.

“We are proud to collaborate with a great company like Geely… to disrupt the game and pave the way for ultra low-emissions ICE [internal combustion engine] technologies,” said Renault CEO Luca de Meo.

Chairman of Geely Holding Group Eric Li stated that the company intends to “become a global leader in hybrid technologies, providing low-emission solutions to automakers worldwide.”

The companies also stated that Saudi energy behemoth Aramco was “evaluating a strategic investment” in the endeavor.

Aramco, the world’s largest oil and gas business, is a major contributor to climate change by emitting greenhouse gases.

Amin Nasser, president and CEO of Aramco, stated earlier this year that the business would increase its investments in low-carbon technologies.

China has surpassed Japan as the world’s leading vehicle exporter.
The Chinese owner of the MG vehicle brand plans to develop a manufacturing in Europe.
The Renault-Geely merger comes as demand for electric vehicles grows in countries around the world, including the United Kingdom.

However, a typical new electric vehicle (EV) is still more expensive than a comparable gasoline or diesel vehicle.

Geely, headquartered in Hangzhou, has also been investing in the production of electric vehicles in recent years.

It paid £11.4m ($14.8m) for Coventry-based London black taxi manufacturer London Taxi Company a decade ago.

The cab company was rebranded the London Electric Vehicle Company in 2017 to emphasize its commitment to EV technology.

It created London’s first electric black cab, with approximately 5,000 of the cars presently on the streets of the metropolis.