This photo taken Oct. 11, 2022, shows Renault Group CEO Luca de Meo answering questions from South Korean reporters during a press conference held in southern Seoul. (Yonhap)
SEOUL, Oct. 11 (Korea Bizwire) — Renault Group will make a massive investment in South Korea, which it sees as a key export hub for the French carmaker, in the next six years, the company’s chief executive officer said Tuesday.
Renault is planning to invest hundreds of millions of euros in its South Korean operations for six years to come in the research and development fields, Renault Group CEO Luca de Meo said in a press conference held in Seoul.
The planned investment will be estimated over 1 trillion won (US$700 million), a Renault Korea Motors official said.
Renault Korea has a sole plant with an annual capacity of 300,000 units in Busan, 453 kilometers south of Seoul, and has said it has no plan to expand the facility.
The Renault CEO said the Busan plant will serve as the export hub of mid- and large-sized vehicles for the French company.
From January to September, Renault Korea sold a total of 123,373 vehicles, up 36 percent from 90,552 units during the same period of last year.
The company expects to sell about 160,000 autos in Asia’s fourth-biggest economy for the whole of 2022, sharply up from 116,166 units sold a year earlier.
This file photo provided by Renault Samsung shows the XM3 SUV.
To help boost sales, Renault Korea recently added the XM3 gasoline hybrid model to its lineup, which includes the QM6 SUV, SM6 sedan and the Twizy electric car.
Renault Korea will collaborate with Geely Automobile Holdings, China’s largest privately-owned automotive group, to launch a mid-sized hybrid model in the market in 2024, the CEO said.
In May, Renault owned an 80.04 percent stake in Renault Korea, and Geely said it will acquire a 34.02 percent stake in Renault’s Korean unit.
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.
(Yonhap)
