Saudi Aramco acquires stake in Geely, Renault joint venture between Horse, Trans

(MENAFN) On Friday, Chinese automaker Geely and its French counterpart Renault disclosed that Saudi Aramco, the oil producer, will purchase a 10 percent stake in Horse Powertrain, their joint venture dedicated to thermal engines. This agreement values Horse Powertrain at approximately 7.40 billion euros (USD7.93 billion). Geely and Renault will each retain around 45 percent ownership in the joint venture, which specializes in supplying gasoline engines, hybrid systems, and gearboxes for conventional fuel-powered vehicles.

The deal marks a significant collaboration aimed at advancing combustion and hybrid technology. Renault CEO Luca de Meo described the partnership as a "dream team" that is poised to reshape the future of automotive propulsion systems. This move strategically positions Aramco within the traditional automotive sector, offering stability amidst the industry's ongoing shift towards electric vehicles.

Ahead of the official announcement, financial platform Finimize highlighted the potential benefits of Aramco's investment in Horse Powertrain. It emphasized that the stake acquisition could bolster investment stability for both Geely and Renault amid the evolving automotive landscape, where electric vehicle adoption is gaining momentum despite challenges related to demand and production costs.

The timing of Aramco's investment coincides with significant regulatory developments. Recently, the European Commission unveiled plans to impose additional tariffs, reaching up to 38.1 percent, on imports of Chinese electric cars starting in July. This regulatory environment underscores the complexities facing the electric vehicle market, further underscoring the strategic importance of investments in traditional automotive technologies. 

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