Renault and Chinese automaker Geely are about to create a joint venture to produce hybrid models in South Korea and strengthen their presence in Asia.
Renault and the Chinese manufacturer Geely are said to be on the verge of joining forces. Discussions have been going on since the beginning of the year between the two manufacturers. They could very soon lead to the creation of an unprecedented joint venture.
A gateway to the USA for Geely
This collaboration between Renault and Geely would notably allow the Chinese manufacturer to use Renault-Samsung’s production resources in South Korea. Indeed, according to sources cited by Reuters, Geely wants to anchor part of its production in the Renault-Samsung factory in Busan, with a new brand and a range of hybrid vehicles. These should take the CMA (Compact Modular Architecture) platform used on Volvo but also on the Lynk & Co 01, cousin of the Volvo XC40. The Lynk & Co 01, currently produced in China, could be one of the first models produced in Korea thanks to this partnership.
For Geely, the interest of this agreement is therefore to strengthen its presence in Korea, and more broadly in Asia. Thanks to production at the Renault factory in Busan, Geely could also Indirect access to the American market, since free trade agreements exist between South Korea and the country of Uncle Sam.
Relaunch in the Asian market for Renault
Renault will be responsible for vehicle design, sales and marketing for this new brand in China. The French manufacturer, which produces and markets vehicles in Korea thanks to a partnership with Samsung Motors, can also win on two points. Le Losange, struggling in the Asian market, dissolved the joint venture with Dongfeng for the Chinese market last year. He could therefore take advantage of this new collaboration with Geely to relaunch himself. Thanks to joint production in Busan, the French manufacturer could also sell certain Lynk & Co models under the Renault Samsung brand.
Photo : Geely
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