Renault opens capital of its subsidiary thermal engines to Saudi oil group Aramco

In a press release, the world’s leading producer of oil, the Chinese car giant Geely and Renault formal their alliance in the historic activity of the French manufacturer.

class = “Caption”> by Sophie Fay

It is now official: the leading producer of world oil, Saudi Aramco, is preparing to enter the capital of the future subsidiary of Renault dedicated to petrol and hybrid engines. This company, temporarily called Horse in the brand’s transformation plan in the diamond, should therefore have three shareholders: the French manufacturer, the Chinese group Geely and the Saudi giant, the second world market capitalization behind Apple with $ 1,900 billion (1 790 billion euros). Information, revealed by MO12345lemonde on 1 er September 2022, was confirmed by a joint press release from the three companies, Thursday March 2.

The new entity will bring together the historic engine activities of the Boulogne-Billancourt manufacturer (Hauts-de-Seine), but also Aurobay, Geely’s joint venture with its Swedish subsidiary Volvo. The future company “will have a total production capacity of more than 5 million transmissions and thermal, hybrid and rechargeable hybrid engines,” said the three companies. It will bring together seventeen factories: those of Renault in Brazil, Argentina, Chile, Turkey, Romania, Spain and Portugal, those of Aurobay in Sweden, and seven Geely production sites in China.

Under the leadership of its general manager, Luca de Meo, Renault decided to separate in two very distinct subsidiaries its thermal engines and its electric cars. The group will keep control of electrical activity, with a participation of Nissan-Mitsubishi, but will share that of Horse. For the moment, the price paid and the proportion of the capital held by Aramco in Horse are not specified, but its participation could be around 20 %. Renault and Geely would each have 40 % and would remain “in equal parts” in this company, specifies the press release.

“Research and development”

Aramco’s investment will be “used to support the growth of the company”, specify the three partners: because if Europe has chosen a fairly short calendar – by 2035 – to prohibit the sale of cars Emitting co 2 , they will continue to represent more than half of the world market in 2040, it is said at Renault. Aramco wants to “contribute to research and development, in particular with regard to synthetic fuel solutions and hydrogen engines of future generation”. Luca de Meo hopes to acquire “one step ahead in the race for thermal technology with very low emissions”.

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/Media reports cited above.