Aramco has signed a letter of intent to become a minority stakeholder in a new powertrain technology company (PWT) that is expected to be established by Geely (Geely Holding and Geely Automobile Holdings Ltd) and the Renault Group. The company will focus on the development of internal combustion and hybrid powertrain technologies.
Aramco’s investment would be used to support the company’s growth and contribute to vital research and development into synthetic fuels and next-gen hydrogen technologies. Geely and the Renault Group are expected to retain equal equity stakes in the new independent entity.
The planned company is intended to act as a standalone global supplier. With access to a global network of 17 powertrain plants and five R&D centers across three continents, it will have a combined estimated production capacity of more than 5,000,000 internal combustion, hybrid and plug-in hybrid engines and transmissions each year. The company intends to supply over 130 countries and regions.
“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 toward ultra-low-emissions ICE powertrain technology,” said Luca de Meo, CEO of Renault Group. “Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.”
“We welcome Aramco in joining us in the creation of a globally leading sustainable powertrain company,” added Daniel Li, CEO of Geely Holding Group. “The proposed investment by Aramco represents recognition from global industry leaders in the Powertrain’s future business prospects and vision for pioneering low-carbon and carbon-free fuels such as methanol and hydrogen.”
Mohammed Y Al Qahtani, Aramco executive vice president of downstream, concluded, “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.”
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