What’s Happening: Saudi Arabian oil company Aramco has signed a letter of intent to potentially become a minority stakeholder in a new powertrain technology company (PWT) that will be established by Geely Holding Group, Geely Automobile Holdings Limited, and Renault Group. The PWT will be dedicated to internal combustion and hybrid powertrain technologies.
Why It Matters: Aramco’s investment in the PWT will contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies. With a global network of powertrain plants and R&D centers, 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. Aramco’s entry brings unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.
Key Points:
- 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 Automobile Holdings Limited, 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.
- Geely and Renault Group are expected to retain equal equity stakes in the new independent entity.
- 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.
- Aramco’s entry brings unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen.
Bottom Line: Aramco’s potential investment in the new Geely-Renault powertrain technology company would support the development of powertrains across the automotive industry, and align with the company’s broader efforts across its global operations. The partnership will help the joint Powertrain company reach the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology.
