Saudi Aramco to enter partnership with Geely-Renault engines venture

On Thursday, Saudi Aramco, a major player in the oil industry, announced its plans to collaborate with car manufacturers Geely and Renault in a new partnership focused on hybrid and internal-combustion vehicles.

Aramco has agreed to potentially become a minority stakeholder in the subsidiary, according to a joint statement released.

In November, the French car manufacturer Renault announced a partnership with China’s Geely to collaborate on the development and production of engines, gearboxes, and other components for hybrid, petrol, and diesel vehicles.

The 50-50 partnership called “Horse” was announced as part of a sweeping overhaul at Renault as it expands its electric vehicle business.

Aramco’s investment will “contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies”, according to the statement.

Renault chief executive Luca de Meo said the Aramco partnership would give the joint venture “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,” de Meo said in the statement.

The new “Horse” subsidiary will have 19,000 employees in Europe, China and South America, with 17 factories and five shared research and development centres.