Automotive giants Geely and Renault Group join forces with Aramco to establish a new powertrain company, aiming to develop lower emission technologies.
Saudi Aramco Joins Forces with Geely and Renault to Create Global Sustainable Powertrain Company
In a groundbreaking move, Saudi Aramco has signed a letter of intent to become a potential minority stakeholder in a new powertrain technology company called PWT. The partnership aims to create a globally leading sustainable powertrain company, focusing on internal combustion and hybrid powertrain technologies, as well as ultra-low-emissions ICE technology, synthetic fuels, and hydrogen technologies.
The new company, PWT, will be established by Geely Holding Group, Geely Automobile Holdings Limited, and Renault Group. Geely and Renault Group are expected to retain equal equity stakes in the new independent entity.
Daniel Li, CEO of Geely Holding Group, and Luca de Meo, CEO of Renault Group, have welcomed Aramco as a partner in the creation of PWT. Daniel Li believes that Aramco's involvement will bring unique knowledge that will aid in the development of breakthrough innovations in synthetic fuels and hydrogen technologies. On the other hand, Luca de Meo believes the partnership with Aramco will elevate PWT, giving it an advantage in the race towards ultra-low-emissions ICE technology.
Aramco's Executive Vice President of Downstream, Mohammed Y. Al Qahtani, views the letter of intent as a new milestone in their commitment to transportation technologies. Amin H. Nasser, the CEO of Aramco involved in the collaboration with Geely and Renault on a new company for developing new fuel technologies, shares the same sentiment.
PWT plans to have a global network of 17 powertrain plants and five R&D centers across three continents. The company aims to be a standalone global supplier with a combined capacity of over five million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year. PWT also plans to supply over 130 countries and regions worldwide.
The proposed collaboration between the three parties is expected to support the development of powertrains across the automotive industry. The collaboration aligns with Aramco's broader efforts across its global operations. The planned investment by Aramco is seen as recognition from industry leaders of the powertrain's future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen.
The partnership is a significant step towards a more sustainable future for the automotive industry. With the combined expertise and resources of Geely, Renault, and Aramco, PWT is poised to lead the way in developing innovative, low-emission powertrain technologies.
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