(Auto) Renault and Geely form alliance to build hybrid cars

[Askor lml]

This project has been in the making since the beginning of this year and could also involve joint operations in China.

According to unofficial information, Chinese automaker Geely and Renault will soon announce a joint venture agreement.

In that sense, Reuters reports that both companies seek to manufacture plug-in hybrid vehicles in South Korea and export some models to the United States.

This alliance between Geely and Renault has been in the making since early 2021 and could also involve joint operations in China, which would allow the French car brand to restart its operations in the world's largest automotive market.

According to the leaked information, the alliance's car line would use the Compact Modular Architecture platform, which Geely shares with Volvo.

The joint venture would also use Geely's supply chains and production facilities in China.

For its part, Renault will be in charge of the design, as well as the sales and marketing of the new brand. From Geely's perspective, this could also give them a production base in South Korea, as well as access to Renault's manufacturing facilities, where Renault has been making cars for more than 20 years through the Samsung Group unit.

One model Geely might want to produce at the Renault plant in South Korea is the Lynk & Co 01, which is currently available as a plug-in hybrid, conventional hybrid and gasoline.

Reuters also reports that Geely could gain a "back door entry" into the US market if this alliance goes through, benefiting from South Korea's free trade agreement with the United States. As a result, they could export Lynk & Co models to the US market.

As for Renault-Samsung, they could make their own versions of various Lynk & Co products, in a bid to drive sales growth locally in South Korea.
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