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Aramco signs letter of intent with Geely and Renault Group for new powertrain company to focus on lower emission technologies

posted on 08/03/2023
Aramco signs letter of intent with Geely and Renault Group for new powertrain company to focus on lower emission technologies

Aramco has signed a letter of intent to become a potential minority stakeholder in a new powertrain technology company (PWT), to be established by Geely Holding Group (Geely Holding), Geely Automobile Holdings Limited (Geely Auto HK.0175) — collectively referred to as “Geely” — and Renault Group. The new company will be dedicated to internal combustion and hybrid powertrain technologies.

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.

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.

Luca de Meo, CEO of Renault Group, said: “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. Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.”

Daniel Li, CEO of Geely Holding Group, said: “We welcome Aramco in joining us in the creation of a globally leading sustainable powertrain company. The proposed investment by Aramco represents recognition from global industry leaders in the Powertrain’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen."

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.”

*Article Source http://www.press.renault.co.uk

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