The drive train system of a Renault Twingo Electric automobile on the production line at the Renault Revoz d.d. plant in Novo Mesto, Slovenia, on Nov. 16, 2022.
Oliver Bunic | Bloomberg | Getty Images
French car maker Renault signed a deal with Aramco and China’s Geely Automobile Holdings in which the Saudi oil producer would become a potential minority stakeholder in a new powertrain technology company, the companies said in a joint statement on Thursday.
Geely and Renault are expected to retain equal equity stakes in the new independent entity, the statement said, adding that the new company will be dedicated to internal combustion and hybrid powertrain technologies.
Reuters reported in January that the car makers were working to finalize a deal to join with Aramco to develop and supply gasoline engines and hybrid technologies, citing three people with knowledge of the talks.
The new company would have an annual production capacity of more than 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, the companies said.