Saudi Aramco Group has signed a letter of intent to become a minority shareholder in the new powertrain technology company to be formed by Renault Group with China’s Geely. It is one of the largest investments an oil company makes in the automotive industry.
Saudi AramcoFoto: G0d4ather, Dreamstime.com
Saudi Aramco has a market capitalization of $1.8 trillion, making it the second most valuable company in the world, following Apple ($2.3 trillion).
In 2022, Aramco signed a partnership with Hyundai Motor to study the development of superior fuels to be used in hybrid cars to reduce CO2 emissions.
The international press wrote in January that Saudi Aramco might have a 20% stake in the new technology company in the field of propulsion systems, Renault’s company that was known as “Horse”.
The new company formed by Renault, Geely and Aramco will have an annual production capacity of more than 5 million internal combustion, hybrid and plug-in hybrid transmissions and engines, Renault says.
Here’s what Renault says
“Aramco has signed a letter of intent to become a minority shareholder in the new powertrain technology company to be formed by Renault Group together with Geely Holding Group. The new company will be dedicated to internal combustion and hybrid propulsion technologies.
Aramco’s investment will support the company’s development and contribute to the research and development of synthetic fuel solutions and next-generation hydrogen propulsion technologies. Renault Group and Geely are expected to maintain equal stakes in the new independent entity.”
“The partnership with Aramco will take our joint venture with Geely Group to a new level and place it at the forefront of the race for the development of very low emission internal combustion propulsion technologies,” says Luca de Meo, Renault Group CEO.
Photo source: Dreamstime.com
