The relationship between Jelly and Renault has been finalized since the signing of a Memorandum of Understanding (MoU) in August 2021. Renault Group and Jelly Auto have now entered into a share subscription agreement and a joint venture agreement following a framework agreement signed in January of this year.
Upon completion, Geely Automobile Holdings, through its subsidiary Centurion Industries Limited, will hold 34.02% of the total issued share capital of Renault Korea Motors (also known as RKM, Renault Samsung Motors). Renault Group will continue to be the majority shareholder of RKM and will continue to consolidate the entity.
In January, Geely Auto’s parent company Geely Holding Group and Renault Group jointly announced a new partnership dedicated to bringing a completely new car line-up of fuel-efficient hybrid and ICE-powered models to the South Korean market, as well as overseas exploration. Sale. The new models will be produced at the existing RKM facility in Busan, South Korea, with volume production expected to begin in 2024.
These new models will be based on Geely’s Compact Modular Architecture (CMA) and will use Hangzhou-based carmaker’s hybrid powertrain technology. Renault and RKM will contribute “cutting-edge technology, design skills and customer experience, to exceed local market expectations”.
The new product range will be sold through the existing RKM sales network. RKM has been at the forefront of post-sales South Korean domestic automated consumer survey consumer insights for six consecutive years until 2021.
“This increase in capital reflects the strong confidence of the Gili Holding Group and the Renault Group in the strong potential of the South Korean market, which will further enhance Renault Group’s ‘Renaissance Plan’. Both companies are fully committed to RKM by launching new product portfolios that will lead to greater market share in the South Korean domestic market while exploring export market opportunities, ”the companies said in a statement.
Geely discusses duty-free exports to the United States through this “backdoor”, because South Korea has a free-trade agreement with the United States – more here.
Gallery: Lynk & Co 01 Facelift