Some media reports unofficial news that Chinese Geely and Renault will soon announce a new partnership.
Reports say the two companies have been working on a joint venture since the beginning of the year and details have now been finalized.
The partnership will also help create a new car brand, focused primarily on vehicles with plug-in hybrid propulsion systems, according to Reuters.
The Chinese carmaker is expected to partner with the CMA platform currently used by both Geely and Volvo. Renault will focus on design and marketing, focusing on the world’s largest car market – China.
The deal will allow Renault to re-enter China, which it left a year ago when its partnership with Dongfeng was terminated.
It could also be a way for the French company to expand its presence in Asia, with a special focus on its South Korean plant called Renault Samsung (where Renault has had an 80% stake since 2000).
Geely will thus gain access to some of Renault’s production facilities, and Busan is considered to be of particular interest in South Korea. According to unnamed sources, Lynk & Co, a brand owned by Geely, could produce its SUV model 01 in South Korea, and other hybrid-powered models are under consideration. They could be sold under the name Renault Samsung.
In addition to strengthening Renault’s position and access to the Korean market, there is another significant benefit for Geely. Namely, this agreement with Renault Geely could open the possibility of using South Korea’s free trade agreement with the United States and exporting Lynk & Co 01 compact crossover SUV vehicles manufactured in South Korean plants there.