Renault and Geely join forces to grow in Asia
Renault has formed a joint venture with Geely to grow its market share in China and South Korea. The JV will be led by Geely but will be completely separate from Geely’s venture with Daimler.
The joint venture will build and sell Renault-branded hybrid cars in China using technology, supply chains and manufacturing facilities of Geely. Initially, it will focus on China and South Korea, with a possible expansion into other Asian markets.
The scope of the joint venture could also be expanded to include fully electric cars and to include a localisation of Lynk & Co cars in South Korea, where Renault has had a presence for more than 20 years.
For Renault, the new agreement is a way to re-enter the Chinese market, after it recently ended a joint venture with Dongfeng Motor Group.
At this time, it is unclear to what extent the new agreement will impact the Renault-Nissan alliance. Sources within Nissan told Reuters they were unaware of the Renault-Geely deal, but they hoped they could benefit from tapping into the Geely supply chain.
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