The mention of the term "market for technology" is known to anyone who knows the automotive industry. In order to develop faster, many car companies chose to cooperate with foreign car brands with technology to establish joint ventures.
Then, through cooperation with these foreign car brands, learn the advanced technology and concepts of others in car manufacturing, so as to achieve their own powerful goals.
For example, SAIC Volkswagen, FAW Toyota, Guangqi Honda and Dongfeng Nissan have all developed on this basis.
However, you may not think that Geely Automobile, a leading car company as an independent car brand, will also enter the Korean market in this way.
Recently, according to the announcement released by Geely Automobile, Geely Automobile signed a share subscription agreement with Renault Korea Automobile, a Korean subsidiary of The French Renault Group. Geely Automobile invested 1.376 billion yuan to subscribe for 45.375 million shares of South Korea's Renault Automobile.
After acquiring a stake in Renault Korea, Geely Automobile will replace Samsung as its second largest shareholder, holding 34.02% of its shares for a period of 5 years.
In this regard, Yang Xueliang, senior vice president of Geely Holding Group, expressed such a view: Geely and Renault Korea are mainly technology exports, basically do not participate in direct management, and are mainly local partners.
To put it more bluntly, that is, Geely Automobile is also "exchanging technology for the market" this time.
According to the data, Renault Korea's sales in the Korean market in 2021 fell by 36.6% year-on-year, with sales of only 61,000 vehicles.
Compared with Hyundai and Kia, South Korea's Renault is not in a good position.
In the future, Geely Automobile will launch a series of fuel vehicles and hybrid models based on the CMA module architecture platform at Renault's Foshan plant in South Korea.
Through the cooperation with Renault, it will not only enhance the brand awareness and market share of the Geely brand in Korea, but also have a positive impact on the global layout of Geely Automobile.
I say this for two main reasons:
First, South Korea is not only one of the more developed countries in the global automobile industry, but also a big automobile consumer and has great consumption potential;
Second, from the perspective of the international situation, through Renault, South Korea Geely Automobile is likely to export vehicles to North America, so as to achieve the purpose of entering the US market.
As early as 2016, Geely Automobile has begun to lay out the European market and has achieved relatively significant results. If we can have a good market performance in the Korean market and the North American market by investing in Renault Korea, it will have a very positive impact on the strategic layout of Geely Automobile's globalization.
It seems that Geely's investment in South Korea's Renault is a "big banner" under Li Shufu.
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