Saudi Arabian oil giant Aramco has acquired a 10% stake in the thermal engine joint venture established by Renault and Chinese automaker Geely, named “Horse.”
Valuation and Ownership Structure
This investment values the company at €7.4 billion, with Renault and Geely each retaining 45% ownership. Aramco’s entry signifies a strategic move to diversify its portfolio and engage in the evolving automotive landscape.
Horse, officially launched on May 31st, will design, manufacture, and sell engines, transmissions, and batteries for thermal and hybrid vehicles. These technologies still dominate sales outside of Europe and China, representing a significant market opportunity.
Exploration of Alternative Fuels
In addition to traditional powertrains, Horse is also exploring alternative fuels such as green methanol, ethanol, and hydrogen. This aligns with the growing interest in sustainable and lower-emission fuel options.
Aramco’s investment is expected to support Horse Powertrain Limited’s growth and contribute to the development of competitive powertrain and synthetic fuel offerings. This collaboration aims to leverage the expertise and resources of all three partners.
Collaboration on Technologies, Fuels, and Lubricants
The agreements also include collaborations between Aramco and Valvoline on technologies, fuels, and lubricants to enhance Horse’s overall performance. This multi-faceted approach reflects a commitment to innovation and optimization.
Aramco, a state-owned oil major and the world’s leading oil producer, is actively participating in the decarbonization of the automotive industry. This investment in Horse aligns with its strategy to explore new avenues for sustainable transportation solutions.
Collaboration as a Path to Decarbonization
Renault CEO Luca de Meo emphasized that decarbonizing the automotive industry requires collaboration among key players. This partnership aims to leverage the combined strengths of Aramco, Geely, and Renault to drive innovation and find new solutions.
Horse boasts a workforce of approximately 19,000 employees across 17 production sites and 5 research centers worldwide. With an estimated annual turnover of €15 billion, the company is well-positioned to contribute to the evolving automotive landscape.