This is part of an agreement signed earlier this year to produce hybrid and ICE-powered cars for the South Korean market
Back in January 2022, Geely Holding Group and Renault Group announced that they are joining forces to introduce an all-new range of hybrid electric vehicles and models with internal combustion engines in South Korea and overseas markets.
Fast forward a few months, and the two automakers have now signed a share subscription agreement and a joint venture agreement which will see Geely acquire a 34.02% stake in Renault Korea Motors (RKM) through its subsidiary, Centurion Industries Limited.
It is not yet clear what kind of vehicles will be produced under the partnership, but we know that they will be underpinned by Geely’s Compact Modular Architecture (CMA) platform and utilise the Chinese automaker’s hybrid powertrain technologies. Renault will be responsible for the design, customer experience, sales and aftersales, as well as manufacturing, which will take place at RKM’s facility in Busan in 2024.
PRESS RELEASE
Renault Group and Geely Auto, China’s largest privately-owned automotive group, have entered into a share subscription agreement and a joint venture agreement subsequent to a framework agreement signed in January 2022 between Renault Group and Geely Holding Group. On completion, Geely Automobile Holdings (0175.hk) via its subsidiary, Centurion Industries Limited, will hold 34.02% of the total issued share capital of Renault Korea Motors (RKM). Renault Group remains the majority shareholder in RKM and will continue to fully consolidate the entity.
In January 2022, Geely Auto parent company, Geely Holding Group and Renault Group jointly announced a new collaboration dedicated to bringing an all-new vehicle lineup of fuel-efficient Hybrid Electric Vehicles (HEV) and Internal Combustion Engine (ICE) models to the South Korean market as well as exploring overseas sales. The new vehicles will be produced at the current Renault Korea Motors facility in Busan, South Korea, with volume production forecast to begin in 2024.
The new products will utilize Geely Holding Group’s world-class Compact Modular Architecture (CMA), developed by Geely Holding Group’s R&D center in Sweden, as well as taking advantage of the Geely Holding Group’s advanced hybrid powertrain technologies. Renault and RKM will contribute their cutting-edge technologies, expertise in design and customer experience, to exceed the local market expectations.
The new product range will be sold through the existing RKM sales and aftersales network. RKM aftersales have been ranked the first for six consecutive years until 2021 in the domestic automotive consumer survey of Consumer Insight.
This capital increase reflects strong confidence by Geely Holding Group and Renault Group in the South Korean market’s strong potential which will further enhance Renault Group’s “Renaulution plan”. Both companies are fully committed to Renault Korea Motors by introducing new product portfolio that will lead to greater market share in the South Korean domestic market whilst exploring export market opportunities.
