Aramco and Geely may get majority stake in carmaker Dacia

China's Geely Automobile Holdings and Saudi Arabia's state oil group Aramco are negotiating to buy 40% and 20% stakes respectively in Renault's future fossil fuel engine unit, which will include the Dacia car plant in Romania (Mioveni Mechanical Plant) as well as engineering centres from several countries, including the one from Romania.

Talks are still ongoing with other partners, according to Reuters quoted by Profit.ro.

Geely owns the Swedish brand Volvo and also controls a 10% stake in Mercedes-Benz.

In May, Renault Group CEO Luca de Meo disclosed to shareholders that an audit showed that the separation of activities dedicated to electric vehicles has great potential.

"We see electric vehicles as a growth business and ICE (internal combustion engines) as a stable cash generator," de Meo previously said.

"It is an industrial need to separate the two teams because they play different sports," explained the Renault official.

(Photo courtesy of the company)