Renault Group and Geely Auto have entered a shared subscription and joint-venture (JV) agreement, which will see the latter holding 34.02% of the total issued share capital of Renault Korea Motors (RKM).
Renault Group will remain the majority stakeholder in RKM, and will continue to fully consolidate the entity.
This comes after the companies' earlier joint announcement in January 2022, whereby this collaboration will result in an all-new line-up of hybrid electric vehicles (HEVs) and regular, internal combustion engine (ICE) models to the South Korean and overseas markets.
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These new vehicles will be based on Geely's Compact Modular Architecture (CMA) platform, and will be powered by Geely's hybrid powertrains too. Renault and RKM, meanwhile, will contribute "their cutting-edge technologies, expertise in design and customer experience, to exceed the local market expectations."
The upcoming range will be produced at the current RKM facility in Busan, South Korea, with volume production forecast to begin in 2024. These cars will be sold through the existing RKM sales and aftersales network.
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"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 Renault Korea Motors by introducing new product portfolio that will lead to greater market share in the South Korean domestic market whilst exploring export market opportunities," said the companies in a joint statement.
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