Geely is set to own over a third of Renault’s South Korean subsidy 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.
Keyword: Geely Acquires 34 Percent Stake In Renault Korea