The automaker could benefit from South Korea’s free trade agreement with the US.
This is a Chinese automaker attempting to enter the US market with a model it produces for its domestic market. However, so far there has not been one successful launch of a car brand made in China by North American automakers. But, this could change if we believe a new rumor.
Reuters first reported that China’s Geely was in discussions with Renault in order to create a joint venture company to produce cars in South Korea. Although it may not look very exciting, the article, which is based on unofficial information from “three people who are familiar with the matter,” suggests that this new JV project could allow the Chinese automaker to gain access to the United States’ new car market.
How is that possible? Geely, which aims at launching its Lynk & Co name in the US could benefit from South Korea’s free trade agreement with the United States. It also has the option to export vehicles made in South Korea. This information, like the rest, has not been confirmed. Reuters states that the new deal is in place since early this year.
A potential deal with Geely for Renault could be a way for Renault to return to China, which it had left two years ago. The joint venture company will focus on hybrid vehicles built on Geely’s existing Compact Modular Architecture, (CMA), which is shared with Volvo. Geely’s supply chains and manufacturing facilities in People’s Republic could be of benefit to Renault.
Geely could be granted access to Renault’s South Korean manufacturing networks, which Renault has operated for over two decades under the Samsung brand. According to the report Geely plans to assemble the Lynk and Co 01 SUV at Renault’s plant in Busan, a southeastern South Korean port town, and then export it to America.