Last year, we reported about Geely and Renault Group's plans to form a new powertrain company when they signed a framework agreement.

Now they have made it official. The joint venture between the two has been signed. Together, they aim to develop, produce and supply advanced internal combustion engines (ICE) and hybrid systems.

As agreed upon in the framework, each entity will have equal shares of the company that will serve as the global supplier of advanced powertrains for brands like Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi Motors, and Punch Torino.

Once fully operational, the new company is set to have 17 powertrain plants, plus 5 research and development (R&D) across 3 continents. The powertrain centers aim to supply over 5 million engines and transmissions per year to over 130 countries and regions.

Notably, Saudi Arabian public petroleum and natural gas company Aramco is also evaluating its investing strategy in this new powertrain company. Aramco already signed a letter of intent with Renault and Geely back in March 2023.

Aramco's investment is aimed to support the growth of the company and contribute to key research and development across synthetic fuel solutions and next-gen hydrogen technologies.

With this agreement, we won't be surprised in the future to see Nissan, Mitsubishi, and Geely vehicles have very similar powertrains, whether electrified or not.