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The Chinese car manufacturer, Geely, is reported to be soon to form a joint venture with Renault (France) to produce hybrid cars. Citing a Reuters report, the joint venture will be established in South Korea and open the possibility for duty-free exports to the United States. The joint venture agreement is said to allow Renault to sustain its business in South Korea and more broadly its presence in Asia. Renault's collaboration with Geely also reopens the French manufacturer's entrance to China, the world's largest car market. As is known, Renault has left the Chinese market last year.
Reuters sources said that the Renault-Geely collaboration is expected to produce a new line of environmentally friendly cars that use Geely's Compact Modular Architecture (CMA) technology. This is the underbody structure of the mid-sized vehicles owned by Geely and Volvo. The report also mentions that Renault will focus on vehicle design, sales and marketing for its new brand in China. For Geely, this deal could mean a production foothold in South Korea and access to Renault's assembly plants in that country. Renault has been manufacturing and selling cars for more than two decades through local brands with units of the Samsung Group.
Geely is said to be producing the Lynk & Co 01 sports vehicle at Renault's assembly plant in Busan, South Korea. The Lynk & Co 01 model is currently available in three drive options namely gasoline, hybrid-petrol and plug-in hybrid engines. Geely is most likely eyeing the US market, the world's second largest, by taking advantage of South Korea's free trade agreement with the US.