December 6, 2022



Geely buys stake in Renault Korea, eyeing U.S. exports

The person said that while the details of how the partnership would work had not yet been sorted completely, Geely might initially use Renault Korea’s Busan plant to make electric robotaxis for Waymo, with which it has an existing supply agreement.

“With the South Korea-U.S. free trade agreement, Renault or Geely would not face tax burdens if they export vehicles manufactured in South Korea to the United States,” said Song Sung-jae, an analyst at Hana Financial Investment.

Renault will sell a 34.02 percent stake in Renault Korea Motors to Geely, which owns Volvo Cars and a 9.7 percent stake in Daimler.

The move follows an announcement by the two companies in January to develop hybrid vehicles for South Korea and abroad, produced at Renault Korea’s Busan plant.

Renault has been making and selling cars in South Korea, largely based on European models, for over two decades via Renault-Samsung Motors and can build 300,000 vehicles a year in its factory in Busan.

Renault-Samsung Motors’ sales have declined in recent years. Last year the brand sold 57,480 cars, a drop of 36 percent from 2020.

Renault is in the middle of a turnaround aimed at increasing margins and separating its electric vehicle business to catch up with rivals such as Tesla.