Aramco Completes Acquisition Of 10% Stake In Horse Powertrain Limited To Enhance Mobility Solutions

Aramco, a major player in the energy and chemicals sector, has acquired a 10% stake in Horse Powertrain through its subsidiary, Aramco Asia Singapore Pte. Ltd. This acquisition is part of Aramco's strategy to explore new mobility solutions aimed at reducing emissions from transportation. The deal was finalised after signing definitive agreements and obtaining necessary regulatory approvals.

The investment values Horse Powertrain at €7.4 billion, with Renault Group and Geely each holding a 45% share. Aramco's Executive Vice President of Technology & Innovation, Ahmad O. Al Khowaiter, highlighted the importance of diverse approaches to tackle transport emissions due to varying global vehicle fleets and infrastructure.

Al Khowaiter stated: "Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. At Aramco, we are pursuing several potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference."

Horse Powertrain's CEO Matias Giannini expressed enthusiasm about Aramco's involvement: "We are delighted that Aramco has closed its investment in Horse Powertrain. Aramco's expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions." This partnership aims to enhance technology leadership and strengthen their position as valuable partners for automotive brands globally.

Jamal Muashsher, CEO of Valvoline Global Operations, commented on their role: "As a technical partner and supplier to Horse Powertrain, we look forward to applying Valvoline Global's 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants." This collaboration aims to shape the future of mobility through joint efforts with Horse Powertrain and Aramco.

The investment is expected to boost Horse Powertrain's development of next-generation internal combustion engines (ICE), hybrid powertrains, and technologies like alternative fuel and hydrogen solutions. The collaboration between Aramco and Valvoline Global Operations will focus on innovations in ICE technology, fuels, and lubricants.

Strategic Vision for Future Mobility

Horse Powertrain aims to become an unmatched partner for advanced hybrid and ICE powertrain solutions that help reduce global vehicle emissions. With its technological leadership, global manufacturing capabilities, and economies of scale, Horse Powertrain seeks to enhance its value proposition for automotive groups worldwide.

The Board of Directors at Horse Powertrain now includes seven members: three from Geely—Daniel Donghui Li (Chairman), Jerry Gan (CEO), Andy An (President); three from Renault Group—François Provost (Chief Procurement Officer), Thierry Charvet (Chief Industry Officer), Denis Le Vot (CEO Dacia); one from Aramco—Ali A. Al Meshari (Senior VP Technology Oversight).

Global Presence and Production Capacity

Horse Powertrain operates 17 plants globally with ten industrial customers across 130 countries. It employs 19,000 people with a strategic focus on China, Europe, and Latin America. The company expects an annual production capacity of five million powertrain units covering full hybrids, long-range plug-in hybrids, and ICEs using alternative fuels like ethanol or hydrogen.

This strategic partnership underscores the commitment towards developing sustainable mobility solutions by leveraging collective expertise in technology innovation across key markets worldwide.

With inputs from SPA