The Saudi takes 10%, instead of the promised 20%, of the capital of the entity created by Renault in thermal engines.
The third partner expected alongside Renault and Geely in the capital of Horse, the company dedicated to thermal and hybrid engines, has finally announced itself: Aramco has announced that it is taking 10% of the capital. This is half the amount expected. The Saudi oil giant had mentioned 20%. But in early June, in the absence of a firm commitment, Renault and Geely announced the creation of Horse at 50/50 while indicating that negotiations were continuing with Aramco.
« The agreements also include collaboration agreements for Aramco and Valvoline on technologies, fuels and lubricants to collectively improve HORSE Powertrain Limited’s performance in thermal engines.“, says the press release published by Renault. The American Valvoline, which produces lubricants for automobiles, was bought by Aramco last year for 2.65 billion dollars.
Horse has combined Renault and Geely’s thermal engine businesses to create a global automotive supplier at the forefront of thermal technologies that will be banned in Europe from 2035 but have a bright future on other continents. According to their estimates, more than half of the vehicles produced worldwide are expected to still be powered by gasoline, diesel or other fuels by 2040. However, they will be “low emissions”, they promise.
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19,000 employees in Europe
Geely and Renault each hold 45% of the capital of Horse Powertrain Limited, based in London. Aramco owns 10%. The company will have nearly 19,000 employees in Europe (Spain, Romania and Sweden), China and South America, spread across 17 production sites and five research centers. It will have around 15 billion euros in annual turnover. Renault and Geely transferred the intellectual property of their engines to him.
Among Horse’s customers, unsurprisingly Renault and Geely Auto but also the other brands in their galaxy: Dacia, Volvo Cars, Lynk & Co, Proton. Without forgetting Renault’s allies: Nissan and Mitsubishi. “ For the industry to achieve carbon neutrality in the coming decades, global synergies, multiple technologies and experience sharing are essential, said Eric Li, Chairman of Geely Holding. Horse Powertrain Limited will have the portfolio, scale and capabilities to deliver the low-emission solutions that tomorrow’s automotive industry will demand. »
Ahmad O. Khowaiter, executive vice president of Aramco Technology & Innovation, believes that this investment, which values the company at 7.4 billion euros, “should directly contribute to the development and global deployment of affordable, efficient and low-carbon thermal engines. Alongside Geely and Renault, we plan to leverage our collective expertise and resources to support revolutionary advances in engine and fuel technologies. With a strong focus on innovation, our goal is to provide solutions that reduce emissions from the transport sector while meeting the needs of manufacturers and motorists.
