Zeekr, Volvo, and Lotus are all owned by Geely. The Chinese automaker now has announced that it will purchase a 34.02 percent stake in Renault Korea for $200 million in order to increase its market position in the vehicle industry.
Renault Korea will sell 45.4 million shares to Geely's Centurion Industries Ltd for $4.56 per share, according to the official announcement. This equates to a total of $207 million for Renault Korea's 34.02 percent ownership. Despite the transaction, Renault Korea remains a majority-owned company, with Samsung Card holding a 20% stake.
This agreement allows Geely to sell vehicles built in South Korea in the United States.
“The agreement will enhance the collaboration between Renault Group and Geely Auto in future projects in the South Korean market”, Geely announced in an official statement released on Tuesday.
A source close to Geely described the deal to Automotive News Europe as "an open gateway into the US for Geely." Geely will be able to sell Korean-made vehicles in the United States tax-free thanks to a free trade agreement between the South Korean and US governments.
Renault, on the other side, will gain from the arrangement by having more funding available for its electrification program.
The Renault Korea Busan facility in South Korea, can produce 300,000 vehicles per year. Geely may use this production capacity at Renault Korea's Busan factory to manufacture the Zeekr Robotaxi.