New Start, New Name
Renault Samsung Motors has taken off “Samsung” from its company name.
The company announced on March 16 that it held a “New Start, New Name” event at its Busan plant and confirmed Renault Korea Motors (RKM) as its new name.
With the company's name change, the word “Samsung” will completely disappear from the automobile industry. Of course, Samsung Group still retains a 19.9 percent stake in the company.
“When we acquired Samsung Motors in 2000, the Samsung brand was more widely recognized in Korea than Renault, so the two companies agreed to use the name Renault Samsung for 10 years,” a Renault Korea official said. “We extended it for another 10 years. We have considered changing our name since 2020.”
Samsung Motors was established in Busan in 1995, reflecting Samsung Group chairman Lee Kun-hee’s long-cherished desire to enter the automobile industry.
Yet, Samsung lacked automobile technology. It built the SM5 medium-sized sedan after years of twists and turns, including paying 14.3 billion won in technology transfer fees to Nissan of Japan. However, even before the SM5 made its debut in the market in late 1997, Korea applied for a bailout program to the International Monetary Funds (IMF). Sales of new cars plunged amid a severe economic recession. Samsung Group could not withstand Samsung Motors’ deficits.
In the end, Samsung Group decided to sell off its automobile business. In September 2000, Renault Group of France acquired most of its assets and renamed it Renault Samsung Motors.