Geely cooperates with Renault in South Korea

Now Geely taps into Samsung Motors: China’s largest private car manufacturer and Renault Samsung Motors plan to produce hybrid and combustion engine models in Busan, Korea from 2024. The models manufactured there will initially be intended for the local market. Later, they plan to expand to other Asian markets. This partnership is also part of the French company’s realignment, called “Renaulution,” which aims to enable the Renault-Samsung brand in Korea to upgrade their product range with technically advanced and efficient vehicles. Until now, Samsung has typically produced rebadged Renault models or Renault imported relabeled models from Korea – a situation that was not completely satisfactory for either side due to the differences in their markets.

For more than 20 years, Renault has been producing cars in Korea together with Samsung and has experienced significant sales declines in recent years. Last year, the joint venture, in which Renault holds an 80 percent stake, sold 57,480 vehicles – a decrease of 36 percent compared to 2020. The planned models will utilize the CMA platform developed by Geely at its European Development Center in Gothenburg, which is currently used by the group for Volvo, Lynk & Co, Polestar, and other automobiles.

According to Geely, nearly 1.3 million CMA vehicles have been sold worldwide so far. The platform is designed to be used for all drive variants, from traditional combustion engines to fully electric models. In the joint venture, Renault is responsible for the design of the models. Eric Li, Chairman of the Geely Holding Group, stated that Geely has had a successful track record of creating technology-focused partnerships. He added:

“We are therefore looking forward to working with Renault and generating new synergies.”

Renault CEO Luca de Meo sees this as an opportunity to “continue the 20-year partnership between Renault and Samsung.”

Mercedes-Benz Cars, Renault, Volvo Cars: All are indirectly interconnected through Geely 

Interesting details on the side: Even Daimler went to Geely with Smart and Renault is now cooperating with Volvo Cars through this route – a partnership that was once vehemently rejected: Renault was supposed to take over Volvo’s passenger cars, in return Renault Trucks went to Volvo Trucks. Renault and Geely are already working together in China after the French ended their cooperation with Dongfeng in 2021. In Europe, Volvo, Polestar, Lotus, and London Electric Vehicle are part of the Geely Holding, which last year sold more than 2.2 million vehicles worldwide, according to its own information. Additionally, Geely holds around a ten percent stake in Daimler.

What does this mean?

Geely has a knack for partnerships and acquisitions – and is quick to step in where European companies are struggling, allowing them to save face and stay in the game locally or with certain brands. At the same time, the Chinese are increasing their influence on EU brands like Mercedes-Benz and Renault.