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World’s Largest Oil Producer Partners With World’s Biggest EV Maker

  • Saudi Aramco wants to optimize transport efficiency and explore innovative tech.
  • BYD sells only plug-in hybrids and electric vehicles, making it an obvious partner.
  • The oil producer is also involved in Renault and Geely’s Horse Powertrain joint venture.

Saudi Aramco, the world’s largest oil producer and fourth-largest company by revenue, knows that the days of relying solely on oil are numbered. In a bid to future-proof itself, the company has entered into a partnership with BYD, the world’s second-largest manufacturer of electric vehicles, to collaborate on new energy vehicle technologies.

A Joint Development Agreement was signed by Saudi Aramco Technology Company and BYD this week. It “aims to foster the development and innovative technologies that enhance efficiency and environmental performance” as they are seeking “new energy vehicle breakthroughs.”

Read: This Tiny Engine Turns EVs Into Gas Hybrids

Limited details have been announced about the partnership, but it could have far-reaching effects across the automotive industry. As two titans of their respective industries, Aramco and BYD have huge amounts of power and can set trends and redefine markets that their competitors will have to follow.

Aramco says it is working to optimize transport efficiency, exploring advanced powertrain concepts and working on lower-carbon fuels. The Saudi giant believes that “multiple approaches” are needed for a practical energy transition.

“At the crossroads of technological innovation and environmental protection, BYD always believes that true breakthroughs come from openness and collaboration,” the company’s senior vice president, Luo Hongbin, said according to a Business Inquire report.

“We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint. We are confident that this will support the world’s efforts to address the climate challenge.”

 World’s Largest Oil Producer Partners With World’s Biggest EV Maker

BYD no longer sells any consumer vehicles without a plug. Last year, it sold 4.27 million new energy vehicles. Of these, roughly 1.7 million were BEVs, while the remaining 2.48 million were PHEVs.

More: BYD’s Concepts Are All About Gold, Dragons, And Video Games

In China, the term new energy vehicles refers to those that are powered in part or primarily with electricity and alternative fuels. They include plug-in hybrids, battery electric vehicles, and fuel-cell EVs. Aramco will logically be eager to grow the reach of BYD‘s plug-in hybrid models, which retain an internal combustion engine running on gasoline.

This partnership with BYD isn’t the only move Aramco is making in the automotive industry. The Saudi juggernaut also owns a stake in Horse Powertrain, the partnership between Renault and Geely that aims to develop and produce innovative new combustion engines. Earlier this week, Horse unveiled a hybrid powertrain concept that can add a small combustion engine to existing electric vehicle platforms.

 World’s Largest Oil Producer Partners With World’s Biggest EV Maker
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As Sales Tank, Tesla Turns To Oil-Rich Saudi Arabia

  • Tesla is preparing to launch in Saudi Arabia, which heavily supports Lucid Motors.
  • An event is scheduled for April 10 and a number of products will be showcased.
  • The company isn’t a stranger to the Middle East as it has locations in Jordan and Qatar.

Tesla is facing a number of headwinds as the company has to deal with an onslaught of Chinese competitors as well as customers who are fed up with Elon Musk. The combination has resulted in attacks in the United States as well as plummeting sales in Europe.

Amid that background, Tesla is eyeing new markets to improve its fortunes. The latest is Saudi Arabia as the company has sent out RSVPs for their opening in Riyadh.

More: Tesla Cybertruck Joins Dubai Police, Looks Terrible In White

The event takes place on April 10 and guests are invited to explore the company’s lineup and “step into a world powered by solar energy, sustained by batteries, and driven by electric vehicles.” The Cybercab and Optimus robot will apparently be in attendance, and Tesla noted employees will be on hand to answer questions about ownership, home charging, and more.  

While Tesla is a newcomer to Saudi Arabia, the company already has a presence in the Middle East. In particular, there are stores and superchargers in Israel, Jordan, Qatar, and the United Arab Emirates.

 As Sales Tank, Tesla Turns To Oil-Rich Saudi Arabia

Tesla’s entrance into the market is interesting to note as Saudi Arabia’s Public Investment Fund has poured billions into Lucid. Part of this helped to fund a plant in the country, which has begun semi knocked-down assembly of the Air. However, it’s slated to become a fully fledged production facility “after the middle of the decade.”

That isn’t the only thing making the situation awkward as Reuters noted Musk was originally banking on Saudi money to take Tesla private. This led to his infamous “funding secured” tweet, which turned out to be nonsense.

The publication also noted EVs only account for 1% of sales in the oil-rich country. This suggests Tesla’s sales problems are far from over.

 As Sales Tank, Tesla Turns To Oil-Rich Saudi Arabia

First AI-Generated Video Ad From Volvo Doesn’t Show A Single Car

  • Volvo’s Saudi ad is AI-generated, with no cars shown and focus shifting to messaging.
  • AI reduced production time from months to weeks, making the process more efficient.
  • The ad uses a voiceover to connect its human-focused narrative to Volvo’s Saudi return.

In the ever-evolving world of advertising, where companies are constantly trying to outdo each other with the next big thing, Volvo has thrown a curveball in Saudi Arabia for a couple of reasons. First, it doesn’t actually feature a Volvo—or a car of any kind. Before anyone jumps to conclusions and assumes this is a rehash of what Jaguar recently did, hear this: the entire ad is a creation of artificial intelligence. It might even offer a glimpse into what we can expect from future brand campaigns.

Titled “Come Back Stronger,” the video ad is a surreal mix of vague, almost abstract clips. There are close-up shots of people, individuals running in the desert, and other scenes that seem completely unrelated to anything Volvo specifically does. What does tie it all together is the voiceover, which, to be fair, sounds like a car commercial—even if the visuals don’t match.

Read: Even Jaguar’s Designers Weren’t Convinced By Controversial Rebranding, Leaked Letter Claims

Here’s the script:

“They say some dreams are too ambitious but we’ve never believed in limits. Challenges didn’t hold us back, they pushed us forward. Every obstacle, every doubt, shaped us into something stronger because progress isn’t about the past, it’s about what’s possible. And what’s possible is everything. This isn’t just a return, it’s a comeback, and together, we vow to always come back stronger.”

So, what does all that mean when it comes to practical application? Volvo is hoping to sell more cars in Saudi Arabia with its new electrified lineup. That’s the long and the short of the entire ad campaign. Once again, Volvo greenlit this with zero cars in the video.

It’s unclear whether Volvo intentionally chose to leave cars out or if it simply had too much trouble getting the AI to generate a truly accurate Volvo model. According to Adweek, Osama Saddiq, the founder of Lion—the agency behind the ad—said, “This was a tough decision… to tell a deeply human story through the voices of Saudi locals… showing the car would have distracted from the narrative.”

Regardless of intention or execution, it’s clear that AI could soon become a powerful tool in the automotive world. Even Mercedes’ head of design has warned that AI might make designers obsolete within the next decade.

Behind-the-scenes storyboards from Lion show just how the company did the work. In addition, it said that by using AI it cut production time from months down to weeks. For many brands, that alone could be enough of an incentive to start experimenting with AI more frequently in the near future.

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