The Zhejiang Geely Holding Group and the Renault Group have signed a cooperation agreement to launch a new low emission vehicle line-up for the South Korean market and also for export markets.
The Renault brand distributors in Australia and New Zealand currently source the right-hand drive Renault Koleos and the new Arkana crossover from the Renault Group’s factories in South Korea.
Renault-Samsung Motors (RSM) will manufacture fuel efficient hybrid electric vehicles (HEV) and internal combustion engine (ICE) vehicles in Busan for the local market and for export, production expected to start in 2024.
Geely Group will become a strategic partner of RSM, including licensing architecture and powertrain technologies.
Bloomberg earlier reported that Renault chief executive Luca de Meo is willing to “rip up the Nissan Alliance script for China traction”.
The new products will use Geely Group’s compact modular architecture (CMA), developed by Geely’s research and development centre in Sweden, and its advanced hybrid powertrain technologies. Renault and RSM will contribute expertise in design and customer experience.
Renault says the new vehicles will provide South Korean customers with premium features, industry-leading technology and strengthen RSM’s reputation in the market as a provider of high-quality automotive services. While the vehicles will be initially designed for the South Korean market, RSM will allow for their export in the future.
“We are looking forward to working with Renault and realising new synergies that combine strengths from both parties to create value for the end user,” Geely Holding Group chairperson Eric Li says.