China’s Geely Automobile Holdings and Saudi Arabia’s state oil group Aramco reportedly 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 in Romania.

Talks are still ongoing with other partners, reported, citing multiple sources.

Geely owns Volvo Cars and has 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 had great potential.

“We see electric vehicles as a growth business and ICE (internal combustion engines) as a stable cash generator,” de Meo said at the time.

“It is an industrial need to separate the two teams because they play different sports.”