Chinese company Geely, owner of Zeekr, Volvo and Lotus, will buy a 34.02 per cent stake in Renault Korea for $200 million, allowing it to export vehicles made in South Korea into the US market.
In the official announcement published on Tuesday, Geely said: “The agreement will enhance the collaboration between Renault Group and Geely Auto in future projects in the South Korean market”.
As reported by Automotive News Europe, a source close to the company described the deal as “an open door into the US” for Geely. Thanks to the free trade agreement between South Korean and US governments, Geely will be able to sell Korean-made vehicles in the US without tax burdens. Renault will also benefit from the agreement, getting access to more funds for its electrification plan.
Read Also: Renault May Sell Part Of Its Nissan Stake, Spin Off EV Business With IPO
The Zeekr Robotaxi designed for Waymo’s US fleet could be built by Geely in South Korea.
While specific plans have not been disclosed yet, Geely could build the Zeekr Robotaxi in Renault Korea’s Busan plant in South Korea which has a production capacity of 300,000 vehicles per year. The autonomous ride-hailing vehicle has been confirmed for a US launch in the coming years, where it will join Waymo’s fleet, while it could also be offered in LCV form.
According to the official announcement, Renault Korea will sell 45.4 million shares to Geely’s Centurion Industries Ltd for ₩5,818 ($4.56) per share. This translates to a total of ₩264,137 ($207 million) for the 34.02 percent stake in Renault Korea. Despite the trade, Renault remains the majority shareholder of Renault Korea, while Samsung Card retains its 20 percent stake.
The news comes a few months after the announcement of the collaboration between Geely and Renault-Samsung for a new range of models based on Geely’s CMA architecture that underpins models such as the Volvo XC40, C40, Polestar 2, and Geely Xingyue L. The gas-powered and hybrid lineup with the Renault-Samsung badges will roll out in South Korea starting from 2024, with possible exports in the future.
