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10th May 2022, Hong Kong, China and Boulogne-Billancourt, France – Renault Group and Geely Auto, China’s largest privately-owned automotive group, have entered into a share subscription agreement and a joint venture agreement subsequent to a framework agreement signed in January 2022 between Renault Group and Geely Holding Group. On completion, Geely Automobile Holdings (0175.hk) via its subsidiary, Centurion Industries Limited, will hold 34.02% of the total issued share capital of Renault Korea Motors (RKM). Renault Group remains the majority shareholder in RKM and will continue to fully consolidate the entity.
In January 2022, Geely Auto parent company, Geely Holding Group and Renault Group jointly announced a new collaboration dedicated to bringing an all-new vehicle lineup of fuel-efficient Hybrid Electric Vehicles (HEV) and Internal Combustion Engine (ICE) models to the South Korean market as well as exploring overseas sales. The new vehicles will be produced at the current Renault Korea Motors facility in Busan, South Korea, with volume production forecast to begin in 2024.
The new products will utilize Geely Holding Group’s world-class Compact Modular Architecture (CMA), developed by Geely Holding Group’s R&D center in Sweden, as well as taking advantage of the Geely Holding Group’s advanced hybrid powertrain technologies. Renault and RKM will contribute their cutting-edge technologies, expertise in design and customer experience, to exceed the local market expectations.
The new product range will be sold through the existing RKM sales and aftersales network. RKM aftersales have been ranked the first for six consecutive years until 2021 in the domestic automotive consumer survey of Consumer Insight.
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.
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