PARIS -- Renault Group said it has reached an agreement with the engineering company Punch Torino on Renault’s 4-cylinder diesel engines for light-commercial vans.
Under the deal, Punch will be able to use and sell current and future versions of the engines, and will help certify them to meet the coming Euro 7 pollution standards, expected to be adopted in July 2025, the companies said Tuesday.
Renault said the agreement will be part of its new Horse joint venture with Geely to develop and sell internal-combustion engines. The new company expects to build up to five million gasoline and diesel engines a year, for use in Renault Group brands including Renault and Dacia, and Geely brands such as Volvo and Lynk & CO.
The Horse joint venture will employ 19,000 people at 17 powertrain factories and three research and development hubs, the companies said. They expect to reach a final agreement and launch the new company this year.
The diesel engines in the Punch Torino agreement will continue to be built at Renault’s powertrain factory in Cleon, northern France. The factory builds 2.0 liter diesels for medium and large vans.
Neither Punch nor Renault disclosed future applications for the diesel engines. Punch, which includes GM’s former European diesel operations, also sells gasoline and diesel engines that were developed by GM.
The companies added that the partnership “will set the foundation for future cooperation” that includes hydrogen-fueled combustion engines, which Punch has been developing in its Hydrocells subsidiary.