Saudi Aramco, the world’s largest oil producer, has announced its acquisition of a 10% stake in a new joint venture between French carmaker Renault and Chinese automaker Geely.
The venture, named Horse Powertrain, is valued at €7.4 billion ($7.93 billion) and aims to supply gasoline engines, hybrid systems, and gearboxes for thermal vehicles.
Renault and Geely will each retain approximately 45% ownership of Horse Powertrain, leaving Aramco with a minority stake. This strategic investment is seen as a move to stabilise investments in traditional automakers amid the global shift towards electric vehicles.
Renault CEO Luca de Meo hailed the partnership as a “dream team” poised to “reinvent” the future of combustion-engine and hybrid technologies. Aramco’s involvement is expected to provide a financial safety net for legacy automakers as they navigate the challenges posed by the electric vehicle (EV) market, which is currently facing concerns over demand and rising production costs.
This move comes shortly after the European Commission announced additional duties of up to 38.1% on imported Chinese electric cars, set to take effect in July.
Aramco, having recently raised around $11.2 billion through a secondary share sale, had initially signaled interest in acquiring a 20% stake in Horse Powertrain, signing a letter of intent in March 2023.
Horse Powertrain was formally established on May 31, marking a significant step in the collaboration between Renault, Geely, and now, Aramco.
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