BEIJING (Reuters) – Renault and China’s Geely have signed a formal agreement for the joint design and production of thermal and hybrid-electric vehicles in South Korea, the two automakers said in a joint statement on Friday.
These vehicles, intended for the South Korean market and for export, will be produced at the Renault-Samsung plant in Busan, South Korea, with the start of production scheduled for 2024.
“This collaboration marks a step forward for the two automotive groups to produce low-emission vehicles but also to increase their penetration in Asian hybrid electric markets,” the two groups said in their press release.
For Renault, this joint venture agreement should enable it to consolidate its struggling activities in South Korea, and more broadly its presence in Asia after leaving the Chinese market last year.
The French manufacturer has been producing and marketing vehicles in the country for more than two decades, through a local brand with a subsidiary of the Samsung conglomerate.
Last month, Reuters reported that Renault and Geely were set to announce an agreement to jointly produce the Chinese automaker’s hybrid vehicles in South Korea and explore the possibility of exporting duty-free vehicles to the United States.
According to the agreement announced on Friday, the new vehicles will use Geely’s Compact Modular Architecture (AMC) and will benefit from the Chinese manufacturer’s advanced hybrid powertrain technologies.
Renault will contribute its expertise in terms of design and customer experience.
(Report Norihiko Shirouzu, Myriam Rivet for the French version, edited by Blandine Hénault)
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