Geely Automobile Holdings and Renault Group have reached an agreement in which Geely Auto will subscribe for a 34.02% stake in Renault Korea Motors (RKM) through a capital increase mechanism.

The deal will be agreed by the relevant authorities.

The companies say the deal will expand cooperation between Renault Group and Geely Auto in future projects around the launch of a brand new line of cars for the South Korean market, as announced on January 21, 2022.

Upon completion of Geely Automobile Holding through its subsidiary Centurion Industries Limited will own 34.02% of the total issued share capital of Renault Korea Motors (RKM). Renault Group remains the majority shareholder of RKM and will continue to fully consolidate the company.

In January, the parent company Geely Auto, Geely Holding Group and Renault Group jointly announced a new collaboration to bring a completely new line of economical hybrid electric vehicles (HEV) and internal combustion engines (ICE) to the South Korean line. market, as well as “overseas sales research”.

The new cars will be manufactured at the current Renault Korea Motors plant in Busan, South Korea, and production is projected to begin in 2024.

The new products will use Geely Holding Group’s world-class compact modular architecture (CMA) developed by Geely Holding Group’s research and development center in Sweden, as well as the use of Geely Holding Group’s advanced hybrid transmission technologies.

The new product range will be sold through the existing RCM sales and after-sales service network.

Both companies say they are fully committed to Renault Korea Motors, introducing a new product portfolio that will increase market share in South Korea’s domestic market while exploring export market opportunities.

The media notes that the production base in Korea can be used by Geely to circumvent US tariffs on new cars imported from China.

A Reuters report suggested that Geely could use the plant in Busan to produce electric robots for Waymo.

See also: Geely and Renault have signed a cooperation agreement in South Korea

Source by [author_name]

Previous articleAsked about a possible nuclear strike, Russia says it’s all in our military doctrine – SABC News
Next articleWho is Mark Boucher? 10 things you need to know about the Proteas coach