This photo provided by Renault Korea Motors shows the XM3 SUV.
SEOUL, May 10 (Korea Bizwire) — Renault Korea Motors said Tuesday an affiliate of China’s Geely Holding Group will invest in the company as part of their parent firms’ agreement signed early this year to develop an environment friendly vehicle.
Geely Automobile Holdings, China’s largest privately-owned automotive group, will acquire a 34.02 percent stake in Renault Korea, the South Korean unit of Renault Group said in a statement.
Renault Korea reportedly plans to issue 45.4 million shares at 5.818 won (US$4.6) per share to Geely Automobile’s unit, Centurion Industries Ltd. The company didn’t confirm the figures.
Renault Group is expected to spend the proceeds from the stake sale in its electrification push to catch up with rivals, such as Tesla Motors Inc. and Volkswagen.
In January, Geely Holding Group and Renault Group announced they will develop an all-new vehicle lineup of fuel-efficient hybrid electric vehicles and internal combustion engine models for the Korean market and abroad.
Geely owns Volvo Cars and a 9.7 percent stake in Daimler AG.
The new vehicles are expected to be produced at Renault Korea’s sole plant in Busan, 453 kilometers south of Seoul, with volume production set to begin in 2024.
Renault currently owns an 80.04 percent stake in Renault Korea Motors, and Samsung Card, an affiliate of South Korea’s largest conglomerate Samsung Group, holds a 19.9 percent stake in it.
The French carmaker will remain the majority shareholder in the Korean unit after Geely’s stake investment, Renault Korea said.
(Yonhap)
