The Renault group and the Chinese company Geely already announced last year that they are going to create a new company called “Horse” that will develop and production of new internal combustion engines (gasoline and diesel), hybrids and plug-in hybrids.

A rather surprising announcement given the two companies’ investments in electrification, but Europe is not a reflection of the rest of the world, thermal cars will continue to be sold in other countries after 2035.

Groupe Renault has just announced this new joint venture Saudi oil giant Aramco has signed a letter of intent to become one of the potential minority shareholders of this new company.

Aramco (@aramco) signs a letter of intent to join a new powertrain company founded by Geely and Renault Group (@renaultgroup). The new company will deal with technologies with lower emissions, such as “green” methanol and hydrogen. Read more: https://t.co/ImeIYUsiyB pic.twitter.com/S1ZTOsMWvB

—Geely Group (@GeelyGroup) March 2, 2023

The transition is also for Aramco

According to the official press release, also published by the world’s largest oil producer, “Aramco’s investment will support the company’s growth and facilitate research and development of solutions based on next-generation synthetic fuels and hydrogen technologies”.

Geely and Groupe Renault will retain equal stakes in the Horse business, but it is not yet clear what percentage Aramco’s stake will be.

Horse, what is it?

Together with the Ampère electric division of the Renault Horse group, it is one of the pillars of “Renaulution”. The company is destined to become a global supplier of power units for 130 countries of the world with an annual production capacity more than five million internal combustion engines, hybrids and plug-in hybrids. 17 plants around the world, depending on the key markets, will be engaged in production.

“This partnership with Aramco will help expand the powertrain business we are developing together with Geely Group. This will give it a head start in the race for very low emission thermal technologies. Aramco’s exit brings unique know-how to develop revolutionary innovations in synthetic fuels and hydrogen.”– said Luca de Meo, boss of the Renault group.