Photo: Geely
According to reports, it would appear that Chinese automotive giant Geely and French carmaker Renault might soon announce a joint venture deal to produce Geely’s hybrid models in South Korea, while also possibly exporting cars duty-free to the United States.
This joint venture has been in the works since earlier this year, and could also involve joint operations in China, which would allow Renault to restart its operations in the People’s Republic, as per Reuters. The French company would then form a new, plug-in hybrid-focused brand, which they will manage jointly with Geely.
These new cars would ride on Geely’s so-called Compact Modular Architecture (CMA), which the Chinese brand shares with Volvo. The JV would also use Geely’s supply chains and manufacturing facilities in China, added sources familiar with the matter.
Renault meanwhile will handle the design aspect, as well as sales and marketing for the new brand. From Geely’s perspective, this could also land them a production foothold in South Korea, plus access to Renault’s manufacturing facility, where the latter has been making cars for over 20 years through the Samsung Group unit.
One model Geely might want to produce at Renault’s plant in South Korea is the Lynk & Co 01 SUV, which is currently available as a plug-in hybrid, conventional hybrid and as a non-hybrid.
Here’s where the story becomes even more interesting though. One of the sources also stated that Geely could gain a “backdoor entry” in the U.S. market if this deal goes through, benefiting from South Korea’s free-trade agreement with the United States. As a result, they could export Lynk & Co models to the U.S.
As for Renault-Samsung, they could make their own versions of various Lynk & Co products, in a bid to spark a sales growth locally in South Korea, where they’ve struggled in recent years.
These new cars would ride on Geely’s so-called Compact Modular Architecture (CMA), which the Chinese brand shares with Volvo. The JV would also use Geely’s supply chains and manufacturing facilities in China, added sources familiar with the matter.
Renault meanwhile will handle the design aspect, as well as sales and marketing for the new brand. From Geely’s perspective, this could also land them a production foothold in South Korea, plus access to Renault’s manufacturing facility, where the latter has been making cars for over 20 years through the Samsung Group unit.
One model Geely might want to produce at Renault’s plant in South Korea is the Lynk & Co 01 SUV, which is currently available as a plug-in hybrid, conventional hybrid and as a non-hybrid.
Here’s where the story becomes even more interesting though. One of the sources also stated that Geely could gain a “backdoor entry” in the U.S. market if this deal goes through, benefiting from South Korea’s free-trade agreement with the United States. As a result, they could export Lynk & Co models to the U.S.
As for Renault-Samsung, they could make their own versions of various Lynk & Co products, in a bid to spark a sales growth locally in South Korea, where they’ve struggled in recent years.
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