Geely acquires 34% of Renault Korea Motors – new JV models to use Geely’s CMA, hybrid tech; due 2024

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The relationship between Geely and Renault, which began with the signing of a memorandum of understanding (MoU) in August 2021, has been finalised. The Renault Group and Geely Auto have now entered right into a share subscription settlement and a three way partnership settlement subsequent to a framework settlement signed in January this 12 months.

On completion, Geely Automobile Holdings by way of its subsidiary Centurion Industries Limited, will maintain 34.02% of the entire issued share capital of Renault Korea Motors (RKM, often known as Renault Samsung Motors). Renault Group will stays as the bulk shareholder in RKM and can proceed to totally consolidate the entity.

In January, Geely Auto’s dad or mum firm Geely Holding Group and Renault Group collectively introduced a new collaboration devoted to bringing an all-new car line-up of gasoline-environment friendly hybrid and ICE-powered models to the South Korean market, in addition to exploring abroad gross sales. The new models can be produced on the present RKM facility in Busan, South Korea, with quantity manufacturing anticipated to begin in 2024.

These new models can be based mostly on Geely’s Compact Modular Architecture (CMA) and can use the Hangzhou-based carmaker’s hybrid powertrain tech. Renault and RKM’s contribution can be in “cutting-edge technologies, expertise in design and customer experience, to exceed the local market expectations”.

The new product vary can be offered by way of the present RKM gross sales community. RKM after-gross sales have been ranked first for six consecutive years till 2021 within the South Korean home automotive shopper survey 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 RKM by introducing new product portfolio that will lead to greater market share in the South Korean domestic market whilst exploring export market opportunities,” the businesses mentioned in a press release.

There have been speak about Geely exporting duty-free to the US by way of this “backdoor”, as South Korea has a free-commerce settlement with the US – extra on this here.

GALLERY: Lynk & Co 01 facelift



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