The partnership will spawn Renault-branded hybrid cars in China and Lynk & Co-based hybrid models in South Korea
Renault may be the kings of electric vehicle sales in Europe, but in China, which is the world’s largest automotive market, the French automaker has struggled to make their presence known. Last year, the company decided to pull out of its joint venture with Dongfeng following poor sales in the People’s Republic.
In what seems to be an attempt to give it another go, Renault has announced that it has signed an agreement with Geely. This time, instead of pure petrol vehicles, the focus will be on jointly developing hybrid cars not only for China but also for South Korea.
While details are scarce, Geely confirms that the joint venture will utilise its existing technologies to sell Renault-branded hybrid vehicles in its home market. Simultaneously, Renault will focus on the branding strategy, channel and service development.
As for the South Korean market, both Renault and Geely said that they will “explore localisation of vehicles based on Lynk & Co’s energy-efficient vehicle platforms for local markets.” Renault has been operating in South Korea under Renault Samsung Motors for over two decades and this new strategic partnership is expected to benefit from that.
Expect more details to surface in the coming months.
PRESS RELEASE
Renault Group, a global company with French roots and 120 years of history in the automotive industry, and Geely Holding Group, China’s largest privately-owned automotive group, today jointly announced an MoU framework agreement to create an innovative cooperation.
The cooperation, focused on China and South Korea as initial key core markets, will allow Renault Group and Geely Holding to share resources and technologies. The focus will be on hybrid vehicles in the fast-growing Asian markets.
Following the adoption by Geely Holding’s opensource strategy for its full vehicle architectures, Geely Holding will partner with Renault Group in the Chinese and Korean markets.
In China, based on Geely Holding’s existing technologies and mature industrial footprint, both partners will jointly introduce Renault- branded hybrid vehicles. Renault will contribute on branding strategy, channel and service development, defining appropriate customer journey.
In South Korea, where Renault Samsung Motors has over two decades of experience, the MoU allows Renault Group and Geely Holding to jointly explore localization of vehicles based on Lynk & Co’s energy-efficient vehicle platforms for local markets.
Both partners will continue to seek more in-depth potential partnership under the spirit of open and innovative partnership mode.
