Energy giant Aramco has signed a deal with Geely Automobile Holdings Ltd and French automotive major Renault Group to purchase a minority stake in a new powertrain technology company (PWT), to be established jointly by both auto majors.
“The new company will be dedicated to internal combustion and hybrid powertrain technologies,” Renault said in a statement.
As per Renault, Aramco’s investment would support the growth of the company, and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies.
“It is expected that Geely and Renault Group retain equal equity stakes in the new independent entity,” the statement noted.
With a global network of 17 powertrain plants and five R&D centers across three continents, the planned company is intended to be a standalone global supplier with a combined capacity of over five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions, Renault said.
Commenting on the development, Mohammed Y Al Qahtani, Aramco executive vice president of downstream, said, “This letter of intent represents a new milestone in our ongoing commitment to transportation technologies, and presents a platform to support Aramco’s research and development in engine innovation. Our planned collaboration with Geely and Renault would support the development of powertrains across the automotive industry, and aligns with our broader efforts across our global operations.”
Agreeing with him, this partnership with Aramco will raise our joint powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology.
He believes that Aramco’s will bring unique know-how to the joint-venture that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.