Saudi Aramco is betting the internal combustion engine will be around for a “very, very long time” as the world’s largest oil company spots a business opportunity from the rise of the electric car.
The state-owned oil group, which made $500bn in revenues last year mainly from producing and selling crude, last month took a €740mn, 10 per cent stake in Horse Powertrain, a company dedicated to building fuel-based engines.
The calculation by Saudi Aramco and the other shareholders in Horse, Chinese carmaker Geely and its French peer Renault, is that as the industry stops designing and developing its own combustion engines, it will start buying them from third parties.
“It will be incredibly expensive for the world to completely stamp out, or do without internal combustion engines,” said Yasser Mufti, the executive vice-president at Saudi Aramco responsible for the deal. “If you look at affordability and a lot of other factors, I do think they will be around for a very, very long time.”
Asked if he thought there would be internal combustion engines forever, Mufti said yes. Saudi Aramco has previously said it believes that even in 2050, more than half of all cars will still run on some sort of fuel.
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