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Brexit victory as £6 billion car engine deal proves leaving EU hasn't alienated business

NewsBrexit victory as £6 billion car engine deal proves leaving EU hasn't alienated business

Britain has scored a major Brexit victory as a new global company has decided to base itself in the UK.

A new car engine company being launched by Renault and Geely will have its headquarters here.

The firms will reportedly invest around £6 billion to develop low-emission, petrol, diesel, and hybrid engines in a move which bolsters the UK’s automotive footprint.

The new plan will employ around 19,000 workers at 17 engine factories alongside five research and development hubs.

The deal comes as the UK and the rest of the world ploughs towards an electric future as the countdown to a ban on the sale of new petrol cars continues.

In a statement, Renault and Geely said the new company will use its UK headquarters to “consolidate operations, build on synergies, and define future plans.”

The new British-developed engines will help Renault and Geely supply the likes of Volvo, Nissan, and Mitsubishi.

Chief executive of Renault, Luca de Meo, said: “We are proud to join forces with a great company like Geely… to disrupt the game and open the way for ultra low-emissions ICE [internal combustion engine] technologies.”

Eric Li, Geely Holding Group chairman, added that the company planned “to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world.”

Renault and Geely also said Saudi energy company Aramco could join the business and it was “evaluating a strategic investment.”

The new engine deal comes as the demand for electric cars continues to skyrocket as more people make the switch to electric.

But some people are being held back from buying an electric car due to the cost. As the cost of living crisis deepens, fewer people may have the financial wherewithal to buy a new electric car.

As a result, some manufacturers are investing in efficient and low-emission petrol engines to try and satisfy customers not yet ready for a new electric car.

There are other concerns about electric cars in addition to the huge cost.

The UK is one of a number of nations suffering from a major charging infrastructure shortage.

While the number of new electric cars is rising rapidly, the number of charging points hasn’t risen at the same rate.

As a result, some drivers are being put off by the fear of not being able to find a charger when they need it, especially on long journeys.

Charging companies such as InstaVolt are trying to catch up with new super hubs. The company has announced it will build a new site on the A34 with space for electric cars, towing vehicles, and HGVs.

Meanwhile, the British Vehicle Rental and Leasing Association (BVRLA) has launched a campaign to help councils develop better electric car charging infrastructure.

BVRLA director of corporate affairs, Toby Poston, said: “The race to decarbonise our road transport will be won or lost at a local level. Authorities are being asked to spearhead new public charging infrastructure strategies, but most of them are under-resourced, under-funded and dealing with a host of competing transport priorities.

“The Government’s LEVI funding is hugely important, but policymakers also need support in understanding the needs of different fleet users, whether it is those based locally or those travelling through.”

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