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Saudi Aramco invests heavily in combustion engines and believes in eternal demand, while electric cars slow down

Written by Rafaela Fabris
Published 09/07/2024 às 18:08
Saudi Aramco invests heavily in combustion engines and believes in eternal demand, while electric cars slow down
Image: MJ/Disclosure

As electric cars slow down, the world's biggest oil company bets on the future of traditional engines

Do you believe that combustion engines' days are numbered? Because the Saudi Aramco do not think like that! According to Folha de São Paulo, the largest oil company in the world has just made a bold move, investing heavily in combustion engines. Let's understand this story.

A Saudi Aramco, the world's largest oil company, is betting that combustion engines They're going to be around for a long time, even with the rise of electric cars. Last month, the oil giant acquired 10% of Horse Powertrain, a company focused on building these engines, for 740 million euros (R$4,3 billion). This partnership with the Chinese Geely and the French Renault aims to meet the demand of automakers that will stop developing their own engines.

Yasser Mufti, Executive Vice President of Saudi Aramco, explained that completely eliminating combustion engines it would be very expensive and complicated. He believes these engines will have a long life, especially considering factors such as accessibility.

What do experts say about Saudi Aramco's investment?

Matias Giannini, CEO of Horse, is also confident. According to him, by 2040, more than half of vehicles will still have some type of combustion engine, be it pure, hybrid or plug-in. Horse is already securing contracts and developing new engines to comply with environmental legislation.

The joint venture between Geely and Renault, which formed Horse, has 19 thousand employees and 17 factories around the world, with capacity to produce 3,2 million engines per year and the goal of reaching 5 million. “There is no one doing what we set out to do,” says Giannini.

Electric Cars vs. Electric Cars combustion engines

Saudi Aramco invests heavily in combustion engines and believes in eternal demand, while electric cars slow down
Horse, from Renault, starts production of components for hybrid vehicles in Brazil

Philippe Houchois, an automotive analyst at Jefferies, said the transition to electric vehicles is slower than many expected. Smaller automakers, such as Honda and Nissan, can become Horse customers. Toyota, for example, is developing new smaller and more efficient hybrid engines.

Meanwhile, Saudi Aramco, the world's largest oil company, is expanding its global network of filling stations and investing in research to develop low-carbon and synthetic fuels. They recently purchased the Valvoline lubricant brand for $2,65 billion, and all Horse engines will use Valvoline products in their “first fill.”

A sustainable future for combustion engines?

A Saudi Aramco believes that there is still room for significant improvements in combustion engines, making them more competitive against electric cars not only in cost but also in sustainability. They are investing in research labs to develop cleaner fuels and efficient.

So, will the combustion engines Will they really disappear or do they still have a long way to go? Only time will tell, but the Saudi Aramco You are placing your chips on this bet.

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Rafaela Fabris

Talks about innovation, renewable energy, oil and gas. Updates daily on opportunities in the Brazilian job market.

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