Chinese automaker Geely Automobile is buying a third of its South Korean division of its French rival Renault. Through this move, the Chinese team hopes to strengthen its exports to the United States. On the other hand, this function should allow Renault to free up financial resources to invest in electric driving.
KeyVolvo owns cars and owns 9.7 percent of Daimler, a 34.02 percent stake in Renault Korea Motors for $ 264 billion ($ 207 million).
At the plant in the South Korean city of Busan, Renault can produce about 300,000 cars a year. However, the French architect is at a strategic crossroads and the company expects to increase its profit margins and increase its operations. In the field of electric motion I want to be free. With that strategy, Renault trusts competitors like Tesla The largest seller of electric cars In the world to catch.
Renault and Jelly already have a partnership in Busan. In January of this year, both companies announced that they would be developing hybrid vehicles at the plant for sale in South Korea and abroad.
Geely has a habit of directing its development with global partnerships. According to the Chinese company, the deal with Renault extends beyond the sale of cars in the South Korean market. Geely can now export cars from South Korea to the United States. “The role of Renault’s South Korean plant opens a new door for Geely to the United States,” observers said.
Although the details of the partnership have not yet been fully resolved, according to viewers in Busan, Jelly will start early. Production of electric robot rods For Waymo, Alphabet’s Autonomous Movement division has a distribution agreement with a Chinese company.
“Thanks to the free trade agreement between South Korea and the United States, neither Renault nor Keeley will have to pay taxes if they export cars to the United States from the Busan factory,” said Chang Chung-jai, an analyst at Hana Financial. Investment.
On the other hand, Geely in South Korea has to take into account higher production costs. After all, wages in South Korea are significantly higher than in China.
“For Chinese companies, creating a successful record in South Korea will enable electric vehicle sales in other emerging markets, as well as in Europe and the United States,” said Kim Jin-woo, a researcher at Korea Investment & Securities.
“Chinese automakers hope to find customers in Europe and the United States, but they face a tough market.”
Renault owned 80 percent of the Busan plant at the end of last year. The rest were in the hands of credit card company Samsung Card, which, however, indicated in December that it wanted to leave the company.
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