With Support from Renault Group and Geely
Renault Korea Motors will pursue the success of its new car project and production normalization with the support from Renault Group, its largest shareholder, and Geely of China, its second-largest shareholder, said Stephane Deblaise, the company's new CEO, on June 10.
Deblaise took the helm of the carmaker on March 1. The automaker changed its name from Renault Samsung Motors to Renault Korea Motors in March, as the company’s brand use contract with Samsung Group expired in August 2021. In May, China’s Geely secured a 34.02 percent stake in Renault Korea Motors.
Deblaise emphasized several times that Geely would not interfere with the management of Renault Korea Motors to quench concerns over the Chinese auto brand’s entry into the Korean automobile market. “Geely does not and will not participate in the management of Renault Korea Motors,” Deblaise said. “Geely’s previous partnerships with Volvo and Daimler were successful because the Chinese automaker did not participate in the management of Volvo and Daimler.”
“If we use Volvo’s platform, we will be able to make a bigger and more attractive new car,” he added. Geely is the largest shareholder of Volvo. Renault Group’s vehicles are compact and mid-sized models, which do not sit well with the Korean market, where consumers favor large cars.
Deblaise also laid out his plan to make Renault Korea Motors a major competitor to Hyundai Motor Co. and Kia Corp., which account for 70 percent of the Korean car market. Renault Korea Motors plans to design a new model using Volvo’s CMA platform and produce it at its Busan plant.
The company's top priority is to normalize its Busan plant. Renault Korea’s annual production has steadily declined since it stopped contract production of Nissan’s SUV Rogue in 2018. Its production volume was cut in half from 264,037 units in 2017 to 128,328 units in 2021. Renault Korea Motors posted an operating loss of 8 billion won in 2021.
Renault Korea Motors is in talks with Renault Group to start rolling out electric vehicles in 2026.
“The proportion of electric vehicle sales in Korea will reach 20 percent in 2026, and this will be the right time for us to start producing electric vehicles,” the CEO said.
He added he would submit a report to the chairman of Renault Group on June 21 to confirm this strategy. He also revealed a plan to change the current line at the Busan plant rather than building a new plant when producing electric vehicles.