Chinese company Geely, owner of Zeekr, Volvo and Lotus, will acquire 34.02% stake Renault Korea for $ 200 million, which allows you to export to the US market cars made in South Korea.
In an official statement issued Tuesday, Geely said: “The agreement expands cooperation between Renault Group and Geely Auto in future projects in the South Korean market.”
As reported Europe’s car newsA source close to the company described the deal as an “open door to the US” for Geely. Thanks to the free trade agreement between the governments of South Korea and the United States, Geely will be able to sell Korean-made cars in the United States without tax burden. Renault will also benefit from the agreement by gaining access to additional funds for it electrification plan.
Although specific plans have yet to be revealed, Geely can build Zeekr Robotaxi at the Renault Korea plant in Busan, South Korea, with a production capacity of 300,000 vehicles per year. It has been confirmed that a standalone standalone vehicle will be launched in the US in the coming years where it will join the Waymo fleet and may also be offered in the form of LCV.
According to an official statement, Renault Korea will sell 45.4 million shares of Geely Centurion Industries Ltd for £ 5,818 ($ 4.56) per share. This is a total of 264,137 ₩ ($ 207 million) for 34.02 percent of Renault Korea shares. Despite the trade, Renault remains the majority shareholder of Renault Korea, and Samsung Card retains a 20 percent stake.
The news appears a few months after the announcement cooperation between Geely and Renault-Samsung for a new line of models based on the Geely CMA architecture that underpins models such as the Volvo XC40, C40, Polestar 2 and Geely Xingyue L. The gas and hybrid model with Renault-Samsung badges will appear in South Korea starting in 2024 year with possible exports in the future.