Renault said Tuesday that, together with its Chinese counterpart, it planned to create a new company that aimed to produce up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions a year. The new firm “aims to become the leader in next-generation hybrid and highly efficient powertrain solutions to meet worldwide demand for the years to come,” Renault said in a statement.
Saudi Aramco’s investment, Renault said, would help the new company grow and fund research into synthetic and hydrogen fuels, both of which are key to decarbonizing the automotive sector, including cars with internal combustion engines. In January, Reuters reported that Saudi Aramco was in advanced discussions with Renault and Geely to take up to a 20% stake in the joint venture, citing three unnamed sources close to the matter.