The French Renault Group has signed a partnership agreement with Italy’s Punch Torino, which specialises in powertrains and electronics, on diesel engines for vans.
Under the commitment, announced Tuesday by the two companies in a joint statement, Punch will be able to buy, use and sell Renault’s current and future four-cylinder diesel engines.
Despite the ongoing electrification of the automotive sector, Renault intends to continue developing “low-emission diesel engines” for small vans and for that it will collaborate with Punch’s engineering teams.
In particular, the two companies will join forces to create engines that comply with the European rules of the Euro VI and Euro 7 variants on emissions, with a view to production from 2025.
The manufacture of the engines for the needs of this alliance will be carried out at Renault’s Cléon plant in Normandy, northwest France.
Renault and Punch said the deal would lay the groundwork for “potential future cooperation,” particularly on hydrogen-using internal combustion engines, in which a subsidiary of the Italian company has expertise.