Aramco may take a stake in Renault’s future thermal engine business – source

PARIS, Sept 1 (Reuters) – Saudi Aramco ( 2222.SE ) Renault ( RENA.PA ) may take a stake in the future of its electric vehicle (EV) business as it plans to separate it from its electric vehicle (EV) division, a source familiar with the matter said. He said on Thursday.

Reuters reported on Tuesday that China’s Geely Automobile Holdings ( 0175.HK ) and an oil group are in talks to take a stake in the fossil-fuel engine business.

Renault’s alliance partner, Japanese carmaker Nissan ( 7201.T ), has no plans to take a stake in the internal combustion engine business, two sources said. Read more

The Saudi state oil company declined to comment.

Renault unveiled plans this autumn to create a France-based EV-dedicated business that will bring all petrol and hybrid engines and transmissions to Spain, Portugal, Turkey, Romania and Latin America.

As EV sales rise, Renault hopes that by sharing falling costs for diesel and gasoline engines, it will free up funds to reinvest in electric models, a technology it pioneered with Nissan and Mitsubishi, but has fallen behind the likes of Tesla.

Reporting by Gilles Guillaume; Edited by Richard Lowe and Jane Merriman

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