Renault and Geely Sign $8.8 Billion Powertrain Tie-Up

(Bloomberg) — France’s Renault SA has formally signed a joint venture agreement with China’s Zhejiang Geely Holding Group Co. to set up a new combustion engine and hybrid powertrain company, while Saudi Aramco is still mulling an investment.

The move follows a letter of intent signed between the three parties in March as the joint venture seeks to pool resources to work on hybrid technology and synthetic fuels to power 80% of the global internal combustion engine and hybrid market, the companies said in a statement Tuesday.