On May 10th, 2022, according to official reports, Geely Auto will acquire a 34.02% stake in Renault Samsung Motors in South Korea. The two parties signed a cooperation framework agreement in January 2022 to jointly develop the Korean market.
Geely and Renault Samsung will produce new energy vehicles at the Renault Samsung factory in Busan, South Korea, based on Geely’s CMA platform and hybrid technology. The new products are expected to go into mass production in 2024, using Renault Samsung’s sales and after-sales network.
In June last year, Renault announced an electrification strategy called “Renaulution”. The CEO of Renault France said that by 2025, the company will launch 10 new electric vehicles, and by 2030, electric vehicles will account for 90% of its product lineup.
This cooperation can be seen as Renault Samsung using the market to exchange for Geely’s new energy technology. Kim Jin-woo, an analyst at Korea Investment & Securities, said that after the establishment of the cooperation between the two parties, Geely may knock on the door of the South Korean electric vehicle market.
Kim added that for Geely, setting up a factory to produce new energy vehicles in South Korea can help it develop electric vehicle markets in Europe and the United States.
This is also a highlight moment for Chinese brands to use technology to exchange for foreign markets.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.