Geely and Renault to form automotive joint venture in Korea soon
Chinese group Geely and French group Renault are considering setting up a joint venture in Korea to produce hybrid cars, Reuters reported on December 21.
Reuters cited industry sources as saying that Geely and Renault will soon announce a contract to jointly produce hybrid cars in Korea and export them to the United States.
The joint venture contract has been in progress since the start of this year. It also includes joint ventures in China. Renault has decided to cooperate with Geely to strengthen its position in Asia, particularly in Korea, where it is struggling, according to analysts.
Under this contract, Geely will be able to establish a production base in Korea via Renault Samsung. The Chinese automaker will introduce hybrid cars under the Renault brand in the Chinese market and develop new green cars in the Korean market through cooperation between Lynk & Co., Geely’s joint venture with Volvo Automobile Group, and Renault Samsung.
Reuters said the creation of the joint venture was aimed at avoiding tariffs on the export of cars to the US market.