Saudi Aramco Acquires 10% Stake in Renault-Geely Thermal Engine Venture
In a groundbreaking move, Saudi Aramco announced its acquisition of a 10 percent stake in the thermal engines joint venture between French carmaker Renault and Chinese automaker Geely. This strategic investment values the business at an impressive €7.40 billion ($7.93 billion).
Creating a “Dream Team” for Future Technologies
With Geely and Renault holding approximately 45 percent each of the powertrain venture, known as Horse Powertrain, the collaboration is set to supply gasoline engines, hybrid systems, and gearboxes for thermal vehicles. Renault CEO Luca de Meo hailed the deal as the formation of a “dream team” that will revolutionize combustion-engine and hybrid technologies.
Aramco’s Contribution to Sustainable Solutions
Aramco’s involvement in the thermal engine joint venture is seen as a stabilizing force for investments in traditional automakers amidst the industry’s shift towards electric vehicles. The company’s Executive Vice President of Technology and Innovation, Ahmad O. Al-Khowaiter, emphasized the importance of developing affordable, efficient, and lower-carbon emission internal combustion engines on a global scale.
Driving Innovation and Emission Reduction
By partnering with Geely and Renault, Aramco aims to leverage its expertise and resources to drive advancements in engine and fuel technologies. The goal is to offer solutions that reduce transport greenhouse gas emissions while meeting the needs of manufacturers and consumers. This partnership also highlights Aramco’s commitment to creating and capturing value on a global scale.
Setting New Industry Benchmarks
Despite initially planning to acquire a 20 percent stake, Aramco’s decision to invest in Horse Powertrain as a minority shareholder showcases its confidence in the venture’s potential. The establishment of Horse Powertrain on May 31 marks a significant milestone in the collaboration between the three companies, with the potential to set new benchmarks for innovation in the automotive sector.
* With Reuters