BEIJING (Reuters) – China’s Geely Holding and France’s Renault have officially reached an agreement to jointly design and produce hybrid electric and gasoline-powered vehicles in South Korea for sale there, as well as for export, a joint statement said. of the two automotive groups.
The new vehicles, based on Geely’s compact vehicle architecture as well as its hybrid powertrain and other technologies, will be produced at the Renault-Samsung plant in Busan and production is expected to start in 2024.
“This collaboration marks a new step in the two automotive groups’ efforts to produce low-emission models, as well as to increase their penetration in Asian HEV markets,” the statement said.
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HEV refers to gasoline-electric hybrid vehicle technology.
For Renault, the joint venture agreement, in place since last year, will allow its struggling South Korean unit to strengthen its product range and expand its market.
Renault has been manufacturing and selling cars in South Korea for more than two decades through a local brand with a unit of the Samsung group.
Reuters reported last month that Geely and Renault were close to announcing an agreement to jointly produce Geely’s hybrid vehicles in South Korea, possibly looking to export duty-free cars to the United States.