Aramco, through its wholly owned subsidiary Aramco Asia Singapore Pte. Ltd., has completed the purchase of a 10% equity stake in Horse Powertrain, a global hybrid and internal combustion powertrain solutions provider. The transaction, valued at an enterprise total of €7.4 billion, includes Renault Group and Geely retaining 45% stakes each through their respective entities. The acquisition follows definitive agreements signed on June 28, 2024, and all necessary regulatory approvals.
Aramco’s investment reflects its broader strategy to innovate and reduce transport emissions, leveraging Horse Powertrain’s expertise in hybrid technologies and internal combustion engine (ICE) systems. The collaboration aims to enhance the development of next-generation powertrain solutions, including alternative fuel technologies and hydrogen-based systems.
Aramco Executive Vice President of Technology & Innovation Ahmad O. Al Khowaiter stated that the partnership addresses the global challenges of transport emissions by advancing diverse approaches tailored to the varying infrastructure and needs of motorists worldwide. Al Khowaiter noted that the investment complements Aramco’s extensive research and development initiatives in synthetic fuels and efficient ICE technologies.
The partnership is expected to accelerate Horse Powertrain’s production capabilities, targeting five million powertrain units annually across its 17 global plants and five R&D centers. The company serves industrial customers in 130 countries and focuses on markets in China, Europe and Latin America. Horse Powertrain’s portfolio includes hybrid systems, plug-in hybrids, and ICE solutions compatible with alternative fuels such as ethanol, methanol, LPG, CNG and hydrogen.
Governance of Horse Powertrain has been restructured to reflect its shareholder composition. The Board of Directors now includes three representatives each from Geely and Renault Group, alongside one Aramco representative. Daniel Donghui Li, Vice Chairman of Geely Auto and CEO of Geely Holding, will serve as Chairman of the Board. Aramco’s representative, Ali A. Al Meshari, serves as Senior Vice President of Technology Oversight & Coordination.
