Saudi Aramco, the world’s most profitable company, could invest and partner with Renault and Geely Automobile Holdings to develop and supply petrol engines and hybrid systems.
Unnamed sources claim that Saudi Aramco may take a 20 per cent stake in the joint powertrain technology company established by Geely and Renault. Such a deal would make Aramco the first major oil producer to invest in the car business, Reuters reports.
If Aramco does indeed take a 20 per cent stake, both Renault and Geely will each own 40 per cent of the joint venture. The joint venture has yet to be named but wants to develop and produce as many as 5 million low-emission and hybrid engines and transmissions annually.
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Renault, Geely, and Saudi Aramco have not commented on reports about the partnership.
A document prepared by the companies reveals that Aramco will be used to support the development of decarbonization technologies for petrol engines. The oil giant would also contribute to the research and development of new powertrain technologies, including next-generation hybrid systems and synthetic fuel solutions. This would be similar to what Aramco is doing through its partnership with Hyundai.
It is understood that a key strategic focus for the joint venture will be to develop an advanced four-cylinder engine that could be used as a power generator to charge a hybrid’s battery. Renault and Geely anticipate that their powertrain joint venture will employ 19,000 individuals at 17 powertrain factories and three research and development hubs.
Saudi Aramco’s investment in the joint venture still needs to be approved by the boards of Renault and Geely.
