Posted on 02 Jul 2024
Saudi oil giant Aramco is acquiring a 10% equity interest in Horse Powertrain Limited – the new powertrain joint venture of automakers Renault and Geely, Kallanish reports.
The deal values the company at €7.4 billion ($7.9 billion), the companies say in a joint statement. Renault and Geely will each retain 45% equity stakes.
The funds will be used to support the growth of Horse Powertrain Limited and contribute to the development of competitive powertrains and synthetic fuel solutions. The London-based JV will focus on highly efficient internal combustion engines (ICEs), transmissions and hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and lower-carbon hydrogen, as well as vehicle electrification.
Horse Powertrain Limited targets an annual production of 5 million powertrain units, including a complete portfolio of advanced powertrain technologies for partners around the world.
Aramco expects its investment to directly “contribute to the development and deployment of affordable, efficient, and lower-carbon emission ICEs globally.”
“Mitigating carbon in the automotive industry won’t be a solo play. It requires the best players to join forces to open new paths and come up with innovative solutions,” comments Renault’s ceo Luca de Meo. “A dream team is born to reinvent the future of ICE and hybrid technologies.”
Daniel Li Donghui, Geely Holding’s ceo, adds: “With Aramco’s support and expertise in fuel technologies, Horse Powertrain Limited further cements its role as a leader in pioneering low-carbon and carbon-free fuel technology solutions such as methanol and hydrogen.”
Currently, the JV has 17 plants globally, nine industrial customers in 130 countries, and five research and development centres.
Source:Kallanish
