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The landscape of the global auto business is getting more and more bizarre. Saudi Aramco, the state oil and gas company of Saudi Arabia, is systematically and steadily
Saudi Aramco is money. This is a lot of oil and gas money pumped out of their native desert by the Saudis. Until recently, the Arabs sat quietly on their “bubble”, buying stocks on the stock exchanges, premium SUVs and piles of gold for their many wives.
But something clicked in the sheikhs’ minds and they moved in unconventional directions. One of the first real “bubbles” was the announcement of Saudi Aramco’s $2.65 billion purchase of US company Valvoline. And Valvoline is not only a manufacturer of motor oil, but also one of the world’s suppliers of additives for its production.
The acquisition of such a property by sheikhs is a logical step. An internal combustion engine needs fuel and lubrication. Since you are pumping raw materials from the earth for the production of both, why not engage in the production of both fuel and oil?
But now the Saudis have signed up to join the next class: the auto industry. Recently, Saudi Aramco announced its intention to become a shareholder in a company formed by Geely and Renault Group, which will produce high-tech automotive engines – internal combustion engines and hybrids.
The conglomerate will bring together 17 factories and five research centers on three continents. The planned output of engines is more than 5 million per year. The company will supply products to more than 130 countries. How does all this affect Russia? Most likely in the most direct way. The fact is that a flow of gray imports of cars and spare parts is already taking place in the Russian Federation through the countries of the Persian Gulf. But this is so far – “flowers” and little things.
The entry of Saudi money into the joint venture between Geely and Renault means that the Arabs will not mind expanding the market for their engines and equipped cars at the expense of Russia, despite possible Western sanctions. Here it is appropriate to recall that on March 1, during Alexander Lukashenko’s visit to Beijing, 16 Belarusian-Chinese economic agreements were signed. Including the establishment of a free trade zone.
Meanwhile, Geely already has a “bridgehead” on the territory of Belarus – the car assembly plant SZAO “Belgy”. We will not be surprised if in a few years’ time cars with Arab-French-Chinese roots will start driving on the roads of Russia. The budding alliance has more than enough finances and skills to bring this idea to life.
Saudi Aramco is money. This is a lot of oil and gas money pumped out of their native desert by the Saudis. Until recently, the Arabs sat quietly on their “bubble”, buying stocks on the stock exchanges, premium SUVs and piles of gold for their many wives.
But something clicked in the sheikhs’ minds and they moved in unconventional directions. One of the first real “bubbles” was the announcement of Saudi Aramco’s $2.65 billion purchase of US company Valvoline. And Valvoline is not only a manufacturer of motor oil, but also one of the world’s suppliers of additives for its production.
The acquisition of such a property by sheikhs is a logical step. An internal combustion engine needs fuel and lubrication. Since you are pumping raw materials from the earth for the production of both, why not engage in the production of both fuel and oil?
But now the Saudis have signed up to join the next class: the auto industry. Recently, Saudi Aramco announced its intention to become a shareholder in a company formed by Geely and Renault Group, which will produce high-tech automotive engines – internal combustion engines and hybrids.
The conglomerate will bring together 17 factories and five research centers on three continents. The planned output of engines is more than 5 million per year. The company will supply products to more than 130 countries. How does all this affect Russia? Most likely in the most direct way. The fact is that already now, through the countries of the Persian Gulf in the Russian Federation, there is a flow of gray imports of cars and spare parts. But this is so far – “flowers” and little things.
The entry of Saudi money into the joint venture between Geely and Renault means that the Arabs will not mind expanding the market for their engines and equipped cars at the expense of Russia, despite possible Western sanctions. Here it is appropriate to recall that on March 1, during Alexander Lukashenko’s visit to Beijing, 16 Belarusian-Chinese economic agreements were signed. Including the establishment of a free trade zone.
Meanwhile, Geely already has a “bridgehead” on the territory of Belarus – the car assembly plant SZAO “Belgy”. We will not be surprised if in a few years’ time cars with Arab-French-Chinese roots will start driving on the roads of Russia. The budding alliance has more than enough finances and skills to bring this idea to life.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
