Chinese carmaker Geely Auto to hold 34.02pct stake of French carmaker Renault's subsidiary in ROK

People visit a car company selling electric cars made by China's Geely Auto in Tel Aviv, Israel, on Nov. 10, 2021. (Photo by Gil Cohen Magen/Xinhua)

Chinese automaker Geely Auto Group has recently forged a partnership with French carmaker Renault, and Geely Auto Group will hold 34.02 percent of the shares of Renault Korea Motors Co., Ltd., a subsidiary of Renault, through its subsidiary Centurion Industries Limited, reported China Securities Journal Tuesday quoting the group.

Insiders point out that the move reflects Geely Auto Group and Renault's confidence in the huge potential of the Korean market where the two companies will work together to help Renault Korea Motors Co., Ltd. enrich its product portfolio.

Geely Auto Group and Renault had signed a cooperation framework agreement in January this year under which the two sides will jointly launch an efficient and fuel-saving fuel and smart hybrid model in the Korean market and plan to put the products into overseas markets.

The new cars will be manufactured at the plant of Renault Korea Motors Co., Ltd. in Busan of ROK, with mass production expected in 2024.

The new products will adopt the world-class CMA modular architecture developed at Geely Auto Group's research and development center in Sweden, as well as the Group's hybrid technology.

The new products will also utilize the existing sales and after-sales network of Renault Korea Motors Co., Ltd. As of 2021, the after-sales system of Renault Korea Motors Co., Ltd. has ranked first for six consecutive years in the domestic automobile consumer survey of ROK.