Renault, Geely strike deal for internal-combustion joint venture

Renault SA (RENA.PA) and China’s Geely have agreed to launch a new, equally held joint-venture that will supply gasoline engines and hybrid technology to the brands they own and other automakers, the two companies said in a statement.

The joint-venture will employ 19,000 people at 17 powertrain factories and three research and development hubs, the companies said.

The framework agreement clears an important benchmark in a months-long effort by the French automaker to carve out its internal combustion business as a separate company.

Renault has also been in negotiations with its existing alliance partner, Nissan Motor Co (7201.T), about new investment in an electric vehicle venture it also plans to establish.