PARIS — Groupe Renault said it had reached an agreement with engineering firm Panch Torino for Renault’s four-cylinder diesel engine for light commercial vans.
Under the deal, Punch will be able to use and sell current and future versions of the engine, which will help it prove it meets Euro 7 pollution standards, which are expected to be adopted in July 2025. The companies said on Tuesday.
Renault said the deal would be part of a new Horse joint venture with Geely to develop and sell internal combustion engines. The new company will produce up to 5 million petrol and diesel engines annually for use by Renault Group brands such as Renault and Dacia, and Geely brands such as Volvo and Link & Co.
The Horse joint venture will employ 19,000 people at 17 powertrain plants and three research and development sites. They have reached a final agreement and plan to launch the new company this year.
Diesel engines under the Panch Turin contract will continue to be built at Renault’s powertrain plant in Cleon, northern France. This plant builds his 2.0-liter diesel for medium and large vans.
Neither Punch nor Renault has disclosed future uses for the diesel engine. Punch, which includes GM’s former European diesel operations, also sells gasoline and diesel engines developed by GM.
The companies added that the partnership “lays the foundation for future cooperation”, including the hydrogen-fueled combustion engine Punch is developing at its subsidiary Hydrocells.