The Geely group may be eyeing a stake in Renault’s engine division to gain access to its powertrains, perhaps with plans to feature them in upcoming models.
Sources tell Reuters, that the proposed deal will see Geely Automobile Holdings and the Saudi-based Aramco oil group acquire a majority stake in Renault’s ‘Horse’ engine division.
The deal could see Geely and Renault holding 40 percent of company shares respectively, while Aramco snaps up another 20 percent.
Aramco, which is backed by the Saudi government, is the world’s largest company by market capitalization, with an estimated value of USD 2.2 trillion.
By acquiring a stake, it would work with Renault on synthetic fuels for combustion engines, according to Le Monde. The oil company has a research centre near Paris, where it concentrates on energy, transport and the environment.
Renault’s powertrain is divided into the ‘Horse’ unit for ICE powertrains and the ‘Ampere’ unit which deals with EV powertrains. The rapidly expanding Ampere unit will remain under Renault’s control as there are plans to take the company public in H2 of 2023.
Renault first announced the strategic divergence of its ICE and EV powertrain division in May this year, at the same time announcing that it was receiving ‘partnership proposals’ for its ICE division.
The new deal could well become the second Geely acquisition of parts of Renault’s business. In May 2022, Geely acquired a 34 percent stake in Renault Korea Motors (RKM) which will eventually see Renault and Geely collaborate on an all-new vehicle lineup for the South-Korean market.
Under the new split between Horse and Ampere, Horse will combine Renault’s ICE, hybrid, and transmission activities and technologies within a single entity.
Thus, by acquiring a stake, Geely will have access to Renault's current range of ICE engines as well as Renault E-Tech Hybrid drive systems.
Renault E-Tech powertrains are offered in hybrid and plug-in hybrid (PHEV) variants and currently power models such as the Clio hatchback, and and Arkana SUVs in selected markets.
Keyword: Geely eyeing a stake in Renault for its ICE, hybrid and PHEV powerplants