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Hybrid-Focused Auto JV For Asia To B Soon Announced By China’s Geely And Renault: Reuters


21/12/2021


Hybrid-Focused Auto JV For Asia To B Soon Announced By China’s Geely And Renault: Reuters
According to reports published in the news agency Reuters quoting sources, the Chinese auto maker Geely Holding and French Renault are expected to announce a deal soon to jointly construct the Chinese automaker's hybrid vehicles in South Korea and explore into potentially exporting automobiles duty-free to the United States.
 
The joint venture (JV) agreement, which has been in the works since early this year and includes joint operations in China, will allow Renault to strengthen its ailing company in South Korea as well as its overall footprint in Asia.
 
Renault, which left China last year, will re-enter the market by developing a new plug-in hybrid-focused brand that will be operated jointly by Renault and Geely, according to the sources.
 
According to the sources, Geely will collaborate with Renault to develop a new line of green vehicles that will utilise Geely's Compact Modular Architecture (CMA), a midsize vehicle underbody framework shared by Geely and Volvo, as well as its supply networks and manufacturing facilities in China.
According to the sources, Renault's newly defined brand in China will focus on car design, sales, and marketing.
 
The agreement might provide Geely with a manufacturing presence in South Korea as well as access to Renault's assembly factory in the nation, where the latter has been producing and selling cars for over two decades through a local brand owned by a Samsung Group subsidiary.
 
According to one of the sources in the report, the Lynk & Co 01 sport-utility vehicle is a model Geely aims to construct at Renault's plant in the southeastern South Korean port city of Busan.
 
The Lynk & Co 01 comes with three different engine options: gasoline, traditional gasoline-electric hybrid, and plug-in electric hybrid.
 
It was unclear which model it planned to manufacture in Busan, but one of the three sources claimed the gasoline-fueled and hybrid variants would be made in South Korea.
 
The goal, according to the sources, is to localise the production of specific Lynk hybrid vehicles in South Korea, indicating that the firms will coordinate local parts supply.
 
According to one of the sources in the storey, Geely may obtain a "backdoor access" into the US market as a result of the transaction.
 
According to sources, the Chinese automaker is considering using South Korea's free-trade deal with the United States to export its Lynk & Co vehicles to the world's No. 2 auto market.
 
Given the COVID-19 outbreak and Sino-US tensions, Chinese automakers such as Chery Automobile have halted ambitions to expand into the United States.
 
Renault will strive to shore up its business in South Korea by producing Renault Samsung versions of select Lynk & Co automobiles in its Busan plant, according to the sources.
 
Renault Samsung Motors, which Renault owns an 80% share in, has had a difficult time in recent years. The number of automobiles sold, including exports, nearly fell from 2017 to 116,000 last year. This year's sales totalled 120,000 automobiles through November.
 
Before the Renault-Dongfeng JV was dissolved last year, Renault and its worldwide alliance partner Nissan Motor Co had the same partner in China, Dongfeng.
 
For a long time, Renault and Nissan have collaborated to design, manufacture, and market cars that share platforms and other vehicle components, lowering manufacturing and other costs.
 
The impact of Renault's relationship with Geely on the Renault-Nissan alliance was not immediately obvious.
 
(Source:www.reuters.com)