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Aramco has completed its acquisition of a 10% equity stake in Horse Powertrain Limited, marking a significant step in their partnership to advance powertrain technologies. This investment, based on an enterprise value of €7.4 billion, positions Horse Powertrain to accelerate its mission of developing innovative hybrid and internal combustion engine solutions for the global market. Renault Group and Geely maintain their respective 45% equity stakes in the company.
Key Highlights:
- The acquisition is based on an enterprise valuation of €7.4 billion.
- Renault Group and Geely each retain 45% ownership in Horse Powertrain.
- The partnership aims to leverage expertise in synthetic fuels, lubricants, and powertrain technologies.
- Aramco’s investment aligns with its research in lower-carbon mobility solutions and reducing emissions.
- The collaboration includes next-generation hybrid and ICE powertrains along with alternative fuel and hydrogen technologies.
Aramco’s acquisition aligns with its broader initiative to explore lower-carbon mobility solutions, including advancements in internal combustion engines (ICE) and synthetic fuels. The deal was finalized following regulatory approvals and builds on Aramco’s significant R&D efforts in the energy and automotive sectors.
Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, emphasized that reducing transport emissions requires diverse strategies, considering the global variation in transport infrastructure and vehicle types. He stated, “Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries.”
Matias Giannini, CEO of Horse Powertrain, expressed enthusiasm about the partnership with Aramco, highlighting its expertise in alternative and synthetic fuels. Giannini said, “Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver low-emission powertrain solutions.”
Valvoline Global Operations will also play a role in this collaboration, contributing its extensive experience in fuels and lubricants. Jamal Muashsher, CEO of Valvoline Global Operations, remarked on the alignment of this partnership with Valvoline’s history of innovation in the automotive sector.
The investment is expected to accelerate the development of next-generation hybrid and internal combustion powertrains, as well as alternative fuel solutions. The collaboration aims to position Horse Powertrain as a leading supplier for hybrid and ICE powertrain solutions, supporting automotive brands globally with their technology leadership, economies of scale, and global manufacturing footprint.
Horse Powertrain’s Board of Directors has expanded to include members from Geely, Renault Group, and Aramco. The board now features seven members, with representation from all three partners, including Ali A. Al Meshari, Aramco’s Senior Vice President of Technology Oversight & Coordination.
Horse Powertrain Snapshot:
- 17 global plants
- 10 industrial customers in 130 countries, including vehicle manufacturers
- 5 R&D centers
- Approximately 19,000 employees
- Strategic presence in China, Europe, and Latin America
- Expected output of 5 million powertrain units annually
- Solutions include full hybrids, long-range plug-in hybrids, and internal combustion engines using alternative fuels like ethanol, methanol, LPG, CNG, and hydrogen
The partnership between Aramco, Renault, and Geely aims to solidify Horse Powertrain’s role as a key player in developing lower-emission powertrain solutions, thereby contributing to the broader effort of reducing global transportation emissions.
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