The Saudi oil giant has taken a 10% stake in the joint venture created by Renault and Geely and specializing in thermal engines.
The Saudi oil giant Aramco has taken a 10% stake in the thermal engine joint venture created by Renault and the Chinese manufacturer Geely called “Horse”, these companies indicated on Friday. This increase in capital values the company at 7.4 billion euros, indicated the three partners. Renault and Geely each retain 45% of the company’s shares.
Horse was officially launched on May 31 and will design, produce and sell engines, transmissions or batteries for thermal and hybrid cars, which still represent almost all sales outside Europe and China. It also plans to focus on alternative fuels such as green methanol, ethanol and hydrogen.
Why is Renault joining forces with Aramco, the Saudi oil giant?
“Aramco’s investment will support the growth of Horse Powertrain Limited and contribute to the development of a competitive powertrain and synthetic fuel offering,” the statement said. “The agreements also include collaboration agreements for Aramco and Valvoline on technologies, fuels and lubricants to collectively improve Horse’s performance,” the three companies explain. Aramco is an oil major owned by the Saudi state, the world’s largest oil producer.
Décarbonation
“The decarbonization of the automobile industry will not be done alone. It requires the best players to join forces to open new paths and find innovative solutions,” reacted Renault CEO Luca de Meo, quoted in the communicated. “Alongside Geely and Renault, we plan to leverage our collective expertise and resources to support revolutionary advances in engine and fuel technologies,” said Aramco Vice President Ahmad O. Khowaiter.
Horse has around 19,000 employees at 17 production sites and 5 research centres worldwide, with a projected annual turnover of 15 billion euros. Renault and Geely have transferred the intellectual property of their engines to it.
