Aramco to become potential stakeholder in Geely, Renault Group powertrain company

Geely announced that Aramco will potentially become a minority stakeholder in the new powertrain company it will put up with the Renault Group.

According to the Chinese automotive firm, Aramco has signed a letter of intent to invest in the said venture. The funding from the Saudi Arabian public petroleum and natural gas company will be used to support the growth of the company, and contribute to key research and development across synthetic fuels solutions and next-generation hydrogen technologies.

“This letter of intent represents a new milestone in our ongoing commitment to transportation technologies and 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,” commented Aramco Downstream Executive Vice President Mohammed Al Qahtani.

With Aramco potentially coming in as a minor stakeholder, Geely said that it is expected that it will have equal equity stakes in the new independent entity as the French automotive conglomerate.

“We welcome Aramco in joining us in the creation of a globally leading sustainable powertrain company. The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s (powertrain technology company) future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen,” said Geely Holding Group Chief Executive Officer (CEO) Daniel Li.

The parties involved plan to leverage their global network of 17 powertrain plants and five research and development facilities across the continent. On that note, plans for the new powertrain company include becoming a standalone global supplier with a combined capacity of over five million internal combustion, hybrid, and plug-in hybrid engines and transmissions annually.

“This partnership with Aramco will raise our joint powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE (internal combustion engine) powertrain technology. Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen,” stated Renault Group CEO Luca de Meo.

To note, the Hong Kong-based brand and Renault Group announced that they have entered into an agreement to create an engine company dedicated to internal combustion and hybrid powertrain technologies in November last year.

Photos from Geely and Renault Group

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