Chinese automaker Geely has entered into a joint venture agreement with Renault Group to buy one-third of the latter’s Korean unit for $205 million (Php 10.46 billion), according to a press statement from Renault Group.
Geely will gain a 34-percent stake in Renault's Korean operations
Geely Automobile Holdings will have ownership of 45.4 million new shares priced at $4.65 (Php 243) each, amounting to 34.02 percent of Renault Korea Motors (RKM), the French multinational carmaker’s subsidiary in South Korea. Proceeds from the sale will allow Renault to spin off its electric vehicle (EV) business to catch up with rivals such as Tesla.
The deal will be facilitated through Geely’s unit Centurion Industries, subject to approval by regulators. Renault Group will retain majority control. The sale aims to strengthen cooperation between Geely and Renault in South Korea, a market where local brands Hyundai and Kia hold sway.
Homegrown automakers such as Kia and Hyundai are in Renault's crosshairs
The news follows the collaboration between Geely Auto’s parent company Geely Holding Group and Renault Group formalized in January 2022, which aims to produce an all-new lineup of internal combustion engine models (ICE) and hybrid electric vehicles (HEVs).
These products will be built around Geely’s Compact Modular Architecture (CMA) platform which is currently used by the Geely Xing Rui sedan and Xingyue L midsize crossover, as well as the Volvo C40 electric subcompact and XC40 compact luxury crossovers. Renault and RKM will reportedly bring cutting-edge technologies plus expertise in design and customer experience.
Geely has an existing supply contract with Waymo for autonomous electric taxis
Production is expected to commence in 2024 at the RKM facility in Busan, which has a capacity of 300,000 vehicles per year. South Korea will be the primary market, with plans to expand sales overseas. An anonymous source close to Geely described the agreement as “an open door to the U.S.,” as part of the units planned for export could be electric robotaxis for Google subsidiary Waymo, with which Geely has an existing supply agreement.
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Know more about Geely
Geely Philippines currently offers three models in the local market this 2023. The Geely Emgrand sedan is the cheapest model with a starting price of Php 753,000 for the entry-level S MT, while the most expensive Geely in the Philippines is the Geely Azkarra with a maximum price of Php 1,765,000 for the flagship Luxury 1.5 DCT. There are two crossovers in the Philippine lineup consisting of the Geely Coolray and Geely Azkarra, as well as one MPV which is the Geely Okavango.
In addition to the monthly updated Geely car price list, Philkotse.com always ensures that it is the address that provides all the best promotions from all dealers in the Philippines along with prepaid and paid programs, and the lowest monthly contribution that car buyers cannot ignore.
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