Saudi Arabia invests in gasoline engines: Renault and Geely get funding

Against the background of the slowdown in the electric vehicle market and the announcements in recent weeks about a return to investments in the development of a new generation of gasoline engines, one of the largest oil producers in the world is also entering the race.

The world's largest oil company, Aramco, which is owned by the Saudi government, will invest hundreds of millions of dollars in the development of gasoline engines, through the purchase of 10% of the drive systems manufacturer HORSE, which is shared with the Renault-Nissan-Mitsubishi group and the Chinese Geely. The money will be used to develop more economical gasoline engines and hybrid power units that will use refined oil, but also gas and synthetic fuel, which should replace oil fuel in the future, at least in luxury vehicles. 

The Renault Group and Geely will each retain a 45% stake in the company, after separating the development and production divisions of fuel-powered propulsion systems from the development of electric propulsion, which they continue to carry out separately. The move was made to allow both to save money during a period of global transition to electric propulsion. But in the last year, a slowdown in the pace of the transition has been felt, which makes it clear that the manufacturers will sell gasoline-powered cars even after 2035, when the sale of non-electric cars in Europe is supposed to stop. 

According to the companies' announcement, the joint company is expected to reach a production rate of 5 million engines per year, in Europe, China and Latin America, in 17 factories and development centers that employ 19 thousand people and are also involved in the development of gearboxes. Luca De Meo, CEO of the Renault Group, said that "reducing carbon emissions by the automotive industry will not be a solo game. It requires the best players to join forces to open new paths and come up with innovative solutions. This is what is happening today when we welcome Aramco as a strategic partner that will reinvent internal combustion engines and hybrid technologies."