Renault Willing to Invest over KRW1tn in Korea
French auto group Renault plans to invest hundreds of millions of euros in Korea to make it the export hub of mid- and large-sized Renault cars, the group's chairman and CEO, Luca de Meo, said during his recent visit to Seoul.
Luca de Meo held a news conference in Seoul on Oct. 11 to discuss Renault Group's new strategy for the Korean market. He said that it was necessary to redefine Renault's position in Korea in the framework of the ongoing Renault Plan, which calls for shifting the focus from sales volume to value creation.
“If conditions are met, we are willing to invest hundreds of millions of euros in Korea over the next six years in the R&D field,” the Renault chairman said. The amount of Renault's planned investment is estimated to be over 1 trillion won (US$700 million). The group plans to make Renault Korea Motors' Busan plant the export hub of mid- and large-sized vehicles.
“To make the investment in Korea, we need to ensure a smooth operation of our joint venture with China’s Geely Auto first,” he said. Renault Korea plans to launch a mid- to large-size hybrid car in 2024, which is under joint development with Geely Auto. In May, Geely Group acquired a 34 percent stake in Renault Korea Motors. Renault Group plans to develop the model using Volvo's platform. Volvo is also owned by Geely.
The Renault chairman also laid out a plan to strengthen cooperation with Korean battery makers. “We are discussing cooperation with our partners to address the battery issue in the long term,” he said, regarding the possibility of setting up a joint venture with a Korean company,
He declined to comment on whether electric vehicles would be produced by Renault Korea. “Right now, we are trying to produce a hybrid model as hybrid models are popular in Korea.” he said, “Renault is the first automobile company to develop an electric vehicle, and we will respond to the market with an open mind.”