Geely is set to own over a third of Renault’s South Korean subsidiary just nine months after the two companies signed a memorandum of understanding.
On completion, Geely will hold 34.02 percent of Renault Korea Motors (aka Renault Samsung Motors). Renault will remain as the majority shareholder, however.
Last January, Geely and Renault jointly announced a new collaboration to bring an all-new vehicle line-up of fuel-efficient hybrid and ICE-powered models to the South Korean market, as well as exploring overseas sales, including to the U.S. The new models will be produced at the current Renault Samsung facility in Busan with volume production expected to start in 2024.
These new models will be based on Geely’s Compact Modular Architecture (CMA) and will use the Hangzhou-based carmaker’s hybrid powertrain tech. Meanwhile, Renault’s contribution will be in technologies, design, and customer experience in South Korea.
Previously, Renault Samsung relied on its European models for over two decades. However, sales in South Korea have declined for the French automaker (down 36 percent in 2021 compared to 2020).
The new product range will be sold through the existing Renault Samsung dealer network. Meanwhile, this may serve as a “backdoor” for Geely to enter the North American market thanks to South Korea’s free trade agreement with the U.S.
I hope Geely buys Ssangyong already!
ReplyDeleteLess chance of that happening now given this deal.
DeleteRenault using Geely tech is another proof that Geely is ready for the US market. Renault is a huge state-owned company in France not to mention one of the engine suppliers for F1 with an F1 team on its own. Point is, they must have done some serious due diligence on Geely.
ReplyDeleteAlso Uly, you must've meant "subsidiary" not "subsidy".
Thanks for the correction.
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