Aramco, one of the world’s leading integrated energy and chemicals companies, through a wholly owned subsidiary has signed definitive agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”). HORSE Powertrain Limited was formed on May 31, 2024, by Renault Group and Geely and is incorporated and headquartered in London, UK.

Aramco will acquire a 10% equity interest in HORSE Powertrain Limited in equal parts from Renault Group and Geely, which will each retain 45% equity stakes. The price to be paid by Aramco at closing, which is subject to customary closing conditions including the receipt of regulatory approvals, will be based on a €7.4 billion enterprise valuation.

This investment aims to enhance Aramco’s contribution to the global energy transition through the development and commercialization of more efficient mobility solutions. The agreements also include collaboration arrangements for Aramco and Valvoline on technologies, fuels, and lubricants to collectively improve the performance of HORSE Powertrain Limited internal combustion engines (ICE).

Aramco, Renault Group, and Geely share the view that the automotive industry will require a combination of various technologies — including highly efficient ICE, transmissions and hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and lower-carbon hydrogen, as well as vehicle electrification — to support an orderly energy and mobility transition around the world.

HORSE Powertrain Limited’s mission is to lead the race towards lower emission next generation technologies, and Aramco’s unique capabilities, including a global network of R&D centers where research on synthetic fuels, hydrogen, and ICE optimization is conducted, can help facilitate the development of more sustainable and accessible lower-carbon solutions.

Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally. With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies. With a strong emphasis on innovation, our goal is to provide solutions that can help reduce transport greenhouse gas emissions while meeting the needs of both vehicle manufacturers and motorists. In securing long-term partnership between Valvoline Global and HORSE Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level.”

Luca de Meo, Renault Group CEO, said: “Mitigating carbon in the automotive industry won’t be a solo play. It requires the best players to join forces to open new paths and come up with innovative solutions. That is what’s happening today as we welcome Aramco as a strategic partner in HORSE Powertrain Limited. A dream team is born to reinvent the future of ICE and hybrid technologies.”

Daniel Li, Geely Holding CEO, said: “Mitigating greenhouse gas emissions will require global synergies, multi-faceted technological solutions, and the sharing of expertise. With Aramco’s support and expertise in fuel technologies, HORSE Powertrain Limited further cements its role as a leader in pioneering low-carbon and carbon-free fuel technology solutions such as methanol and hydrogen.”

Matias Giannini, HORSE Powertrain Limited CEO, said: “I am delighted that Aramco has joined HORSE Powertrain Limited. Their expertise in fuels and hydrogen makes them a great partner for us to deliver cutting-edge, lower-emission powertrain solutions, driving our industry’s carbon mitigation efforts forward. Together, we will set new benchmarks for innovation in the automotive sector.”

HORSE, a global leader in innovative and low emissions powertrain systems, today starts the manufacturing and assembly of its highly efficient 1.2-litre, 3-cylinder gasoline engine (HR12) at its plant in Mioveni, Romania.

The most efficient engine among the HORSE product portfolio and the most powerful produced at HORSE Romania, the HR12 is used in several vehicles, including hybrids.

The beginning of production in Mioveni supplements HORSE’s global capacity for the HR12 engine, with engines produced in Romania to be installed in new Dacia Duster models. The HORSE Valladolid factory in Spain will continue to produce the engine for the Renault Austral and Espace models.

Patrice Haettel, Chief Executive Officer of HORSE, said: “We have started the production of the HR12 engine at our factory in Romania, building upon our ongoing assembly of the engine in Valladolid, Spain. It is part of a global strategy that provides us with unprecedented scale and competitiveness due to our proximity to key markets. This manufacturing agreement is good news for HORSE, for the Mioveni plant and, above all, for the market”.

Expanding HORSE’s global footprint

HORSE Romania will assemble the HR12 engine on-site – as well as the casting for the cylinder blocks in its aluminium foundry, the largest of its kind in Romania and within the HORSE ecosystem.

HORSE has extensively invested in the Mioveni facility to enable HR12 production. On the assembly line more than 75 % of existing workstations have been modified and 24 new workstations installed. As a result, the full production lifecycle – including the casting and the finishing of the cylinder blocks – will be completely in-house.

HORSE has also invested in advanced testing and quality assurance capabilities in Mioveni, including a helium leak testing system, a CT scanner for cylinder blocks, and high-pressure washing and drying machines.

As a result of these investments, the company has created 70 new permanent local jobs and expects the newly installed capacity to produce 450,000 engines per year. 18 per cent of production will be exported outside of the EU to HORSE’s Bursa plant in Turkey.

Next-generation engine technology

The highly efficient HR12 is a 3-cylinder, 1.2-litre gasoline engine that is designed to cover a range of product needs. It has a maximum power output of 96Kw at 4,500 rpm, with a maximum torque of 230Nm at 1,800 rpm. Developed for both EU and global markets, the HR12 fully complies with EU6D-Full regulations, and is designed to also comply with new Euro7 regulations.

It delivers state-of-the art thermal management, using technologies such as water-charged air coolers and low-pressure cooled exhaust gas recirculation. The HR12 has a long-stroke layout for greater fuel economy during use.

HORSE: a leader in automotive innovation

HORSE was created to provide highly efficient, low-emission engines, transmissions, and technologies to meet the varying power generation needs around the world. HORSE operates eight production plants across seven countries, three R&D centres and a head office based in Madrid, Spain – the company produces 3.2 million units per year for its customers around the world.

HORSE, a global leader in innovative and low emissions powertrain systems, has launched its next-generation of Range Extender powertrains.

The powertrain has a 200km EV-only range, with the engine adding a further 600km of range for a total of 800km. This offers drivers long-range travel while allowing them easy access to low-emissions zones.

The high-voltage battery is around half the size of a pure EV battery, delivering both significant cost savings, weight, and reduced pressure on the critical mineral supply chain.

The engine works as an onboard power source for the vehicle’s battery, powering the battery via an electric generator outputting 50kW for passenger vehicle models, and 80kW for light commercial vehicle models. It maintains the charge level of the high-voltage battery, which is used to power the electric drive motor.

The benefit of a Range Extender is the engine constantly operates in a high-efficiency operating window (rev range), minimising fuel consumption and emissions.

Patrice Haettel, CEO at HORSE, commented: “One look at regional level sales profiles around the world points to the need for a variety of power generation solutions to meet individual consumer demands and technical needs. There’s not a one-size-fits-all solution, instead we’re developing next-generation hybrids, range extenders, and synthetic and hydrogen fuelled power solutions.

“This new Range Extender technology enables users to enter low-emission zones around major cities, driving in pure EV mode. However, when the battery charge depletes and the user needs to travel greater distances, the Range Extender adds a further 600km of range enabling travel further afield with ease and maximum efficiency.”

Best-of-both-worlds powertrain
In contrast to traditional PHEVs, the combustion engine of a range extender never directly drives the vehicle’s wheels. When the battery’s state of charge is sufficient, the engine will automatically be turned off.

The vehicle’s battery can also be charged in a similar manner to an EV, using a public charger or domestic power supply. When used with low-carbon fuels, this means that the cradle-to-grave footprint of a vehicle powered by a range extender is comparable to an equivalent long-range EV.

The HORSE Range Extender technology has been designed to work across any existing vehicle architecture, whether designed for EVs or traditional combustion engines. The battery size provides greater flexibility of packaging, allowing greater efficiency in vehicle design.

HORSE: a leader in automotive innovation
HORSE was created to provide highly efficient, low-emission engines, transmissions, and technologies to meet the varying power generation needs around the world. HORSE operates eight production plants across seven countries, three R&D centres and a head office based in Madrid, Spain – the company produces 3.2 million units per year for its customers around the world.

HORSE, a global leader in innovative and low emissions powertrain systems, has signed a multi-year agreement to supply its powerful and efficient diesel engines to pioneering Turkish automotive manufacturer, HABAŞ.

The agreement with HABAŞ represents HORSE’s first major partnership with an automotive manufacturer outside of its existing ownership relationship. This follows numerous successful contract wins in South American markets.

HORSE’s expertise in delivering advanced and efficient powertrains made its M920 RWD 2.0-litre turbo diesel a natural choice for HABAŞ, which will use the engine in its first-ever Light Commercial Vehicles. HORSE will supply the powertrains to HABAŞ’s new production facility in Manisa, Türkiye.

Patrice Haettel, Chief Executive Officer at HORSE, said: “The first major agreement with a new automotive manufacturer is a significant milestone for the company and truly highlights our ambition to provide class-leading low emissions powertrains to clients across the globe. HORSE’s global footprint, including facilities in Bursa, Türkiye, meant that we were the perfect partner for HABAŞ, to meet their needs as they scale up production of their new Light Commercial Vehicles.”

Advanced diesel technology

The 2.0-litre four-cylinder engine delivers maximum power of 170PS (125kW) at 3,500rpm, while peak torque of 380Nm is delivered at just 1,500rpm for excellent driveability and fuel efficiency under all loads and road conditions.

The turbo diesel unit features innovative technology, including common rail injection operating at 2,500bar for precise fuel delivery and exceptional efficiency, as well as a variable vane turbine turbocharger, which results in exceptional response at all engine speeds.

This state-of-art powertrain also meets strict Euro 6d+e full emissions regulations, making it suitable for all European markets. It has also been designed to use the latest B10 diesel that contains 10% biofuel content for a lower carbon footprint.

HORSE: a leader in Innovative Powertrain Solutions

HORSE was created to provide highly-efficient, low-emission engines, transmissions and technologies to meet the varying power generation needs around the world. HORSE operates eight production plants across seven countries, three R&D centres and a head office based in Madrid, Spain – the company produces 3.2 million units per year for its customers around the world

HABAŞ Group

HABAŞ was established by Mr. Hamdi Başaran in 1956. Today, led by Chairman Mr. Mehmet R. Başaran, the HABAŞ Group has grown to become one of Türkiye’s largest production and export companies, specialising in industrial and medical gases production, steel production, power generation, heavy machinery manufacturing, motorcycle production, ship building and banking.

HABAŞ has entered the automotive sector with the introduction of a range of electric and diesel-powered buses, midibuses and trucks, produced in accordance with international standards using the latest technology. HABAŞ has also acquired the closing HONDA Türkiye production plant with the intention of producing passenger cars.