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Geely to pay US$200 million for a third of Renault Korea as China’s largest private-sector carmaker sets sights on exporting to the US
- Renault will sell 34 per cent of its South Korea unit to Geely for 264 billion won (US$207 million)
- Renault, which can assemble 300,000 vehicles a year in Busan, is in the middle of a turnaround aimed at increasing margins and separating its EV business
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China’s Geely Automobile will buy just over a third of Renault’s Korea unit for roughly US$200 million, potentially helping it boost US exports, and freeing up funds for the French carmaker to invest in its electric business.
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Renault, which can assemble 300,000 vehicles a year in its factory in Busan, South Korea, is in the middle of a turnaround aimed at increasing margins and separating its electric vehicle (EV) business to catch up with rivals such as Tesla.
The French firm’s move to sell the stake to Geely – which owns Volvo Cars and a 9.7 per cent stake in Daimler – follows an announcement by the two companies in January to develop hybrid vehicles for South Korea and abroad, produced at the Busan plant.
For Geely, which has typically grown its business through global partnerships, the deal goes beyond selling cars in South Korea and is a way for the Chinese carmaker to export cars made in South Korea to America, a person close to the company said.
“It is an open door into the US,” said the person who declined to be named because the plans are confidential.
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