Renault announced that it has partnered with Geely Holding Group (Geely Group) to mainly deliver a wide array of all-new vehicles to the South Korean market. This partnership will help Geely gain traction in South Korea through Renault-Samsung Motors (RSM), as well as assist Renault in growing its network in the Chinese market.
The French marque gets access to Geely's CMA platform which was used on models like the Xingyue L
Dubbed as the ‘Renaulution,’ this partnership includes sharing of resources between the two automakers including the use of the Compact Modular Architecture (CMA) platform jointly developed by Geely and Volvo. Some of the models developed under the said platform include the Volvo XC40, Geely Xingyue L, and Lynk & Co 01.
“We are happy to initiate such as [an] innovative partnership with Geely Group, which has [an] impressive track record in [the] automotive industry. Through this project, Geely Holding and Renault Group pave the way to pursue 20 years of successful RSM journey and contribution to the South Korean industry,” said Renault Group CEO Luca de Meo.
Renault is looking to strengthen its presence in Asian markets
Now that the Renault-Geely collaboration is official, the French automaker has turned its back on the “leader-follower” strategy introduced by Nissan in 2020. As a recap, Nissan is responsible for growing the strategy in China, while Renault handled markets including Europe, South America, North Africa, and South Africa.
Renault felt like Nissan’s performance in the Chinese market was underwhelming as de Meo said that the Japanese marque couldn’t save them. As such, the company is looking for a fresh start with China’s largest privately-owned automotive group. The partnership will start operating in South Korea by 2024, with plans to export to various markets including China.
“Geely has a proven track record in creating mutually beneficial collaborations that focus on technology, experience, and shared ideas with the ultimate goal of creating higher quality, more sustainable products. We are looking forward to working with Renault and realizing new synergies that combine strengths from both parties to create value for the end-user,” said Geely Holding Group Chairperson Eric Li.
Stay updated with the latest in the car industry here at Philkotse.com.