Renault-Samsung plant in Korea will produce Geely models in 2024
- For about ten years, the Korean plant in Busan which belongs to Renault and which manufactures Renault-Samsungs for the Korean market but also some Renaults for the European market has been experiencing difficulties, facing the domination of the Hyundai-Kia group which owns 72% of the Korean market. Renault-Samsung Korea's sales do not exceed 4% of this market.
- The French manufacturer tried to produce Renault Koleos and Latitudes there for the European market, then Nissan X-Trails for the American market. An attempt to export its cars from Korea to China ended in failure. Calibrated to produce 300,000 cars per year, the Busan plant exceeded 250,000 units per year only once, that was in 2010, and production volume then fell to 150,000 units in 2012, then 100,000 in 2015.
- Since that date, production has been around 100,000 to 150,000 per year depending on the year. In 2021, the Busan plant benefited from the export of 40,000 Renault Arkana to Europe and the sale in Korea of 40,000 Samsung XM3 (its twin brother). These two models represent 60% of production at the Busan plant. But this success is random and will only last a few years.
- This is why Renault has decided to completely change its strategy regarding the Busan plant, which is operating at less than half capacity. From 2024, the Busan plant will produce thermal and hybrid vehicles based on Geely models (the largest independent Chinese manufacturer). These models will adopt the AMC platform developed at Volvo in Sweden, as well as the hybrid engines of the Chinese manufacturer. They will be marketed in Korea and then exported throughout Asia.
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