Tuesday, January 17, 2023, 08:38
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Saudi oil giant Aramco will enter into the association with Renault and the Chinese from Geely and will own 20% of the engine production a Daciaas well as from research centers in Romania, according to an exclusive Reuters report, cited by Biziday.
According to the quoted source, in an exclusive report, the Reuters agency informs that Renault and Geely Automobile of China are on the verge of finalizing an agreement in which Aramco, the oil producer of Saudi Arabia (state-owned) will receive 20% of the conglomerate which makes gasoline and hybrid engines for the two car companies.
Both Renault and Geely will each reduce their participation to 40% in the entity that will own Renault Mécanique Roumanie (the engine and gearbox factories), as well as the research, design and testing centers in Bucharest and Titu. Renault still retains the car assembly plant in Mioveni as well as the chassis factory, but becomes a minority shareholder in the engine plant and the other associated entities Dacia-Renault from Romania, which in total has almost two thousand employees.
According to a document of the three companies, seen by Reuters, the establishment of a propulsion company with an annual production capacity of more than “5 million hybrid and low-emission engines and transmissions” is aimed at this year.
The investment by Aramco, which is the world’s largest oil company, would be used to support the development of technologies that would extend the life of gasoline and hybrid engines at a time when most automakers are focusing on switching to pure vehicles electrical. Aramco would also contribute to research and development of synthetic fuel propulsion technologies and hydrogen engines, the document said.
Renault and Geely declined to comment on the information.
