Renault, Geely eye partnership with Saudi Aramco to develop gasoline engines, hybrid technologies

Logo of Saudi Aramco

Renault and Geely Auto are working on the final details of a contract with Saudi Aramco as an investor and partner to develop and supply gasoline engines and hybrid technologies, Reuters reported, citing three sources with the knowledge of the matter.

Saudi Aramco has entered into advanced discussions to acquire a stake of up to 20% in Geely-Renault powertrain technology company, announced earlier and is being established by the two companies, the sources said.

The goal is to set up a powertrain company this year with a production capacity of more than 5 million low-emission engines, hybrids and transmissions per year, according to a document prepared by the two automotive companies and viewed by the news agency.

Renault and Geely will have a 40% stake each in the joint venture, which is set to combine part of Renault's existing combustion-engine production with Geely's gasoline and hybrid technology as well as related assets, the sources added.

The new joint venture aims to develop more efficient gasoline engines and hybrid systems, at a time when much of the automotive industry is focused on capital-intensive transition to purely electric vehicles.

The financial terms of Saudi Aramco's potential investment in the joint venture are not yet known, the agency said, noting that the document states that the investment will be used to support the development of technologies to reduce carbon emissions for gasoline engines.

Meanwhile, Saudi Aramco will contribute to the research and development of powertrain technologies, particularly, synthetic fuel solutions and next-generation hydrogen technologies.