(Yicai Global) Nov. 8 -- Chinese carmaker Geely Holding Group and French auto giant Renault Group today announced they had signed a non-binding framework agreement to set up a firm to develop, manufacture and supply both hybrid powertrains and internal combustion engines for cars.

The project is expected to commence in 2023 and both parties will hold a 50 percent equity stake in the new company, per the statements released today.

The firm will offer hybrid and ICE powertrains to brands, including Dacia, Volvo and Nissan, and will also offer related powertrain technologies.

The new company plans to operate 17 powertrain plants in three continents, employing around 19,000 people in total. It will have a combined capacity of over 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions.

“We are pleased to have agreed plans for an ambitious partnership with Geely to keep developing the ICE and hybrid engine technologies that will remain a critical part of the automotive supply chain for decades to come,” said Luca de Meo, Renault Group CEO.

The two firms announced in January the launch of a joint venture to develop and sell fuel and smart hybrid Renault-branded vehicles in South Korea.

Editor: Tom Litting