Saudi Aramco could take a stake in Renault’s future thermal engine unit: Report

Published: Updated:
Enable Read mode
100% Font Size

Aramco could take a stake in Renault’s future thermal engine unit, Le Monde reported on Thursday, after Reuters reported this week that the French carmaker was eying a partnership between Geely and an unspecified oil company to take a majority stake in the unit.

“According to our information, it is the Saudi company Aramco,” the French daily said in an article on its website.

For the latest headlines, follow our Google News channel online or via the app.

By sharing the costs of a still-dominant gasoline activity that is set to decline rapidly over the decade, particularly in Europe due to changes in regulations, Renault hopes to free up funds to invest in electrics, a technology it has been one of with Nissan and Mitsubishi pioneer, but is overshadowed today by “pure players” like Tesla.

The project is to transfer thermal and hybrid activities to a foreign-based entity.

“The group has already received requests for partnerships” for the company ICE (internal combustion engines), one of the sources told Reuters in May.

If the French automaker intends to remain the majority shareholder of its electrical division, which will employ around 10,000 people and which it could list in the second half of 2023, it plans to remain only a reference shareholder and have no control over its thermal unit. , which will have a similar workforce.

“Renault should retain a significant but not controlling stake,” another source said. “Even if it is not certain, we are currently talking about 40 percent for Renault and 60 percent for partners.”

Read more: Lucid says Saudi Arabia’s PIF ‘very supportive’ as supply crunch hits production

Top Content Trending