Saudi oil giant Aramco has acquired a 10% stake in the joint venture between Renault and Chinese manufacturer Geely, called “Horse”, the companies said on Friday. The capital increase values the company at 7.4 billion euros, the three partners said. 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 account for almost all sales outside Europe and China. It also plans to focus on alternative fuels such as green methanol, ethanol and hydrogen.
“Aramco’s investment will support the growth of Horse Powertrain Limited and contribute to the development of a competitive synthetic fuel and propulsion systems offering,” the statement said. “The agreements also include collaboration agreements for Aramco and Valvoline on technologies, fuels and lubricants to collectively improve Horse performance,” the three companies explain. Aramco is a major oil major owned by the Saudi state, the world’s largest oil producer.
Decarbonization
“Decarbonizing the automotive industry will not happen alone. It requires the best players to join forces to break new ground and find innovative solutions,” Renault CEO Luca de Meo was quoted as saying in the statement. “Together with Geely and Renault, we plan to leverage our collective expertise and resources to support breakthrough advances in engine and fuel technologies,” said Aramco Vice President Ahmad O. Khowaiter.
Horse has around 19,000 employees in 17 production sites and 5 research centers around the world, with an expected annual turnover of €15 billion. Renault and Geely transferred the intellectual property of their engines to it.
Source: BFM TV
