The Renault-Geely joint venture deal should be formally announced soon
Renault and Geely are soon expected to announce a joint venture to produce hybrid cars in South Korea and to possibly export cars duty-free to the USA.
Said to be in the works since early this year, the joint venture deal also involves the formation of a new plug-in hybrid-focused brand, thus enabling the French carmaker to re-enter the Chinese auto market it exited last year.
This new car brand will begin rolling out models underpinned by Geely’s Compact Modular Architecture (CMA) which is already shared by the Chinese firm and Volvo.
The design, sales and marketing for the new brand for China will be handled by Renault, while the supply chains and manufacturing facilities will be that of Geely.
What does the Chinese automotive firm get out of this deal then? Well, it could gain access to Renault’s assembly plant in Busan, South Korea and a production foothold in the country.
It is said Geely wants to make the hybrid versions of the Lynk & Co 01 SUV there, while Renault Samsung Motors will also make their own versions of certain Lynk & Co cars.
But there’s more. Through the Renault joint venture, Geely might also gain a “backdoor entry” into the USA (where it plans to sell Lynk & Co cars) by taking advantage of South Korea’s free-trade agreement with the United States.