French car manufacturer Renault and Chinese carmaker Geely have launched a new company that will have headquarters in the UK.

The companies are set to invest approximately £6 billion in developing low emission petrol, diesel and hybrid engines.

The new company will include 17 engine plants and 5 research and development centres in three continents with 19,000 employees.

The joint venture aims to have an annual production capacity of up to five engines.

Luca de Meo, Chief Executive Officer at Renault Group, said: “When it comes to the global race for decarbonising road transports, there is no time to lose, and it will not be business as usual.”

Eric Li, Geely Holding Group Chairman, said: “With this agreement, we reiterate our commitment to leveraging our group-wide technological expertise and brand portfolio to pioneer the journey to greater sustainability and value creation which will lead to better consumer experiences.”