Saudi Aramco has agreed to take a minority stake in a new powertrain engine company that French car maker Renault SA and China's Geely Automobile Holdings Ltd plan to set up jointly, they said on Thursday.
The new joint venture is aimed at developing more-efficient gasoline engines and hybrid systems.
With a global network of 17 powertrain plants and five R&D centers across three continents, the planned company is intended to be a standalone global supplier with a combined capacity of over five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions.
Aramco Executive Vice President of Downstream Mohammed Y. Al Qahtani described the move as a “new milestone in our ongoing commitment to transportation technologies," saying it "presents a platform to support Aramco’s research and development in engine innovation.”
“Our planned collaboration with Geely and Renault would support the development of powertrains across the automotive industry, and aligns with our broader efforts across our global operations.”
"This partnership with Aramco will... give it a head start in the race towards ultra-low-emissions ICE powertrain technology," Renault CEO Luca de Meo said in the statement.
"Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen," De Meo said.
“The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen,” said Daniel Li, CEO of Geely Holding Group.
