This morning, Geely signed a relevant agreement with Renault of France, and Geely officially invested in Renault Korea Automobile, with a shareholding ratio of 34.02%. Previously, Geely has successively invested in Volvo and Daimler Group, so as soon as the news of Geely's stake in Renault came out, the first sentence blurted out by Xiaobian was that Geely was so rich.
Leaving aside these miscellaneous topics, the news about the cooperation between Geely and Renault is actually not surprising, after all, earlier, the news that Renault will cooperate with Geely has been heard endlessly, and following the signing of the relevant cooperation framework agreement between the parent companies of the two sides in January 2022, Geely and Renault have finally signed an auto share subscription agreement for Renault's Korean subsidiary.
For Renault, which has faded out of the Chinese market, seeking Geely's "help" and broadening its market in South Korea seems contradictory, but it is actually reasonable.
First of all, the cooperation between Geely Automobile and Renault Group has a clear division of labor. Geely takes over the Renault Korea factory and is responsible for providing it with technology, equipment, and production supply chain, of which the technical part is Geely's famous world-class CMA modular car-making architecture, while Renault is responsible for the design, marketing and other aspects of the brand, and the new brand intends to create a model equipped with new hybrid technology, which has the characteristics of high efficiency, fuel saving and intelligence.
At the end of March, our account published an article, "Renault announced sanctions against Russia, Russian media said: We still have Chinese cars", when many friends commented at the bottom, the words were full of disdain for Renault, "Renault? It's long gone in China." Indeed, the loss of china and Russia two major markets, Renault's development has become precarious, coupled with the current is in the traditional car companies to transform the new energy field of critical period, for renault in the field of fuel are busy, the survival of the group has reached a critical moment of life and death.
Backed by the mountains to make a better comeback, Renault found China's largest private automobile group Geely to cooperate, and its Sima Zhao heart was obviously impossible to hide. You must not be limited to the two words "South Korea", Renault and Geely, aiming at not only the South Korean market, for Renault, which has been struggling in the Chinese car market, because of the decline in sales to have no choice but to withdraw from the Chinese market, how to return to China with this cooperation and reoccupy the share of the Chinese car market is its deeper purpose.
And for Geely, its ambition is not only to seize the market in South Korea, look farther ahead, if the entry into South Korea can use the South Korea-US free trade agreement to open the way into the U.S. car market, then geely automobile into the U.S. market prospects can be described as a bright, how is it not fragrant? The U.S. auto market ranks second in the world, once the Geely brand has gained a foothold in such a huge volume as the United States, then then expand the European market, is not it a matter of minutes? Geely's cooperation with Renault to further open up its international market and enhance the international awareness of the brand is not a good choice for mutual benefit and win-win results.
Write at the end
It has to be said that independent car companies and foreign brands have gradually become a "new trend" to create new cars, and when mainland car companies have their own excellent car manufacturing strength, the road for independent brands to open the door to the world has gradually become clear. For Renault, this is undoubtedly a good time to turn back to the mainstream market, although in the end whether Renault can save its market share we do not know, but for the independent brand Geely, this has made a good start for its brand to penetrate overseas plans.