Geely wants to "marry" Renault?
Yes, you read that right. Recently, Geely Holding Group and Renault Group formally signed an agreement to form a joint venture company to develop, produce and sell Renault brand fuel vehicles and intelligent hybrid vehicles in South Korea based on Geely Automobile's CMA structure and hybrid technology, and export them to Markets in South Korea and beyond.
In short, Geely is responsible for technology development, providing key technologies such as platform and power, while Renault is responsible for vehicle design brand building, production and marketing.
For the first model after the cooperation between Geely and Renault, it has also attracted the attention of consumers. Previously, it was reported that their first cooperative model or will be Lynk & Co 01 PHEV, and try to change the Renault standard to sell in South Korea.
However, combined with the interpretation of the information given by the official today, to a large extent, it will not be this "change of label Lynk & Co", but a new model based on the modular platform of Geely CMA.
Before the deadline, the information points of the new models based on the CMA modular platform are still quite limited, but according to the scope of cooperation technology released by the two car companies, it is very likely that the first model will be a model equipped with Geely Thunder God Intelligence Hi · X powertrain 5-seat SUVs.
In addition, the car has been clearly put into production in 2024, during which time it may be expected. It is worth noting that the follow-up of the car will also be hung with the Renault standard and produced and sold in China.
Although South Korea has a developed economy, the smaller population is doomed to have a small car market, and most Koreans only support local car companies such as Hyundai Kia, so even if Geely and Renault "marry" to enter the Korean market, it will not bring large-scale benefits.
It is clear that Geely's ultimate intention in taking this step is to market outside of South Korea. It should be known that at present, Geely has successively entered the markets of Asia, Europe, Oceania and other markets and gradually opened up the situation, on the contrary, it is still in a blank space in North America and other regions, among which the reason for restricting Geely's entry into North America is higher tariffs.
By cooperating with Renault to produce and sell them in South Korea, we can make good use of the free trade agreement between the United States and South Korea, and export hybrid vehicles such as The Company to the North American market led by the United States, which can greatly enhance the competitiveness of Geely Automobile in North America.
Whatever the reason for Geely and Renault's "marriage", in fact, the benefits outweigh the disadvantages for both of them.
Since Dongfeng Renault withdrew from the Chinese market, it has not had any volume to speak of in the passenger car field, and cooperation with Geely can take this as a good opportunity to return to the domestic passenger car market. Geely, on the other hand, can be free from high tariffs, export cars to the North American market led by the United States, and further expand overseas markets.
Finally, their successful "marriage" is more due to the mutual benefit between enterprises, which will not have a substantial impact on our ordinary consumers to buy cars. However, as ordinary consumers in China, we can still look forward to the first model after their cooperation, do not know to hang a Renault standard, the price of selling Geely cars, are you willing to pay?