Although a lot of manufacturers are moving towards carbon-free vehicles, Geely, Renault and Aramco are still adamant that there is space for vehicles with ICE (Internal Combustion Engine) engines.
The new venture will apparently help Saudi Aramco grow in an industry that is undergoing a shift towards a battery-powered future.
Renault and Geely, however, will retain equal equity stakes in the new project to develop internal combustion and hybrid powertrain technologies.
Although this venture might sound like a step backwards, Saudi Aramco's contribution for the project will help towards building more efficient and greener engines, as Aramco will support in terms of research, development of synthetic fuel and next-generation hydrogen technology.
All three parties believe there will still be demand for the combustion engine and plug-in hybrid cars for the foreseeable future, especially in developing countries.
Under the cooperation, the new venture will have a total of 17 powertrain factories in 3 countries.
According to Free Malaysia Today, they aim to produce more than 5 million units of ICE engines, hybrids and plug-in hybrids to be marketed to more than 130 countries, and a portfolio capable of covering up to 80% of the internal combustion engine market globally.