Zhejiang Geely Holding Group (ZGH) and Renault Group have signed an agreement to launch an all-new vehicle line-up for the South Korean market. As part of the deal, Geely will license architecture and powertrain technologies to Renault-Samsung Motors (RSM), which will be tasked with manufacturing hybrid and internal combustion vehicles in Busan for the local market and for export.
Renault says the partnership forms part of its “Renaulution” programme to enhance the RSM brand, with production of the yet-unannounced vehicles, which are claimed to “meet and exceed local market expectations,” set to begin in 2024.
The upcoming RSM vehicles will be underpinned by the Compact Modular Architecture (CMA) platform, which was jointly developed by Geely and Volvo. The platform is already being used by various models like the Xingyue L, Polestar 2, Lynk & Co 01 as well as the Volvo XC40/C40. For now, there’s no mention of what models will be created using this platform, although given current trends, an SUV might be the first.
Geely has a proven track record in creating mutually beneficial collaborations that focus on technology, experience and shared ideas with the ultimate goal of creating higher quality, more sustainable products. We are looking forward to working with Renault and realizing new synergies that combine strengths from both parties to create value for the end user,” commented Eric Li (Li Shufu), founder and chairman of ZGH.
“We are happy to initiate such an innovative partnership with Geely Group, which has impressive track record in Automotive Industry. Through this project, Geely Holding and Renault Group pave the way to pursue 20 years of successful RSM journey and contribution to the South-Korean industry,” said Luca de Meo, CEO of Renault Group.
This partnership was first mentioned back in August last year, with both companies agreeing to a memorandum of understanding to create a joint venture. Following the withdrawal of Renault from its other joint venture, Dongfeng Renault, the French brand is looking to regain a foothold in China as well, and the RSM-made vehicles will likely be exported to China as well. South Korea also has a free-trade agreement (FTA) with the US, so Geely could find a point of access there too.
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