Saudi Aramco Acquires 10% Stake in Renault-Geely Joint Venture

Saudi Aramco has secured a 10% stake in Horse Powertrain, the joint venture between French carmaker Renault and Chinese automaker Geely, according to a statement released on Friday. This investment values the joint venture, which focuses on gasoline engines, hybrid systems, and gearboxes for thermal vehicles, at €7.40 billion ($7.93 billion).

Geely and Renault will each maintain approximately 45% ownership in the venture. The remaining 10% will be held by Aramco. This collaboration is expected to drive advancements in efficient and lower-carbon emission internal combustion engines on a global scale.

Aramco’s Executive Vice President of Technology & Innovation, Ahmad O. Al Khowaiter, emphasized the strategic importance of this investment in supporting the development of cutting-edge engine and fuel technologies. Renault CEO Luca de Meo hailed the partnership as forming a “dream team” poised to revolutionize combustion-engine and hybrid technologies.

Geely Holding CEO Daniel Li highlighted the necessity of global cooperation to reduce greenhouse gas emissions, noting that the partnership will enhance Horse Powertrain’s leadership in low-carbon and carbon-free fuel technology solutions, including methanol and hydrogen.

The announcement follows previous reports that estimated Aramco’s stake to be around 20%, indicating that the final agreement settled at a lower share. Neither Aramco nor Renault provided immediate comments on the revised stake percentage.