Renault Group and Geely Holding have signed an agreement to launch a new collaboration aimed at bringing Hybrid Electric Vehicles (HEV) and Internal Combustion Engine (ICE) models to the South Korean market as well as for export sales.

The new vehicles will be produced at the Renault-Samsung facility in Busan, South Korea, with production forecast to begin in 2024.

The two signed an agreement for a JV in China last year.

Under the Korean collaboration, the new products will utilize Geely’s compact modular architecture (CMA), developed by Geely’s R&D centre in Sweden, as well as taking advantage of Geely Group’s advanced hybrid powertrain technologies. Renault and Renault-Samsung Motors (RSM) will focus on meeting local market expectations.

The companies say the new vehicles will provide South Korean customers with premium features, industry-leading technology and strengthen RSM’s reputation in the market as provider of high-quality automotive services. While vehicles will be initially designed for the South Korean market, RSM will allow for their export in the future.

Eric Li, Chairperson of Geely Holding Group, said: “Geely has a proven track record in creating mutually beneficial collaborations that focus on technology, experience and shared ideas with the ultimate goal of creating higher quality, more sustainable products. We are looking forward to working with Renault and realizing new synergies that combine strengths from both parties to create value for the end user.”

Luca de Meo, CEO of Renault Group, said: “We are happy to initiate such an innovative partnership with Geely Group, which has impressive track record in Automotive Industry. Through this project, Geely Holding and Renault Group pave the way to pursue 20 years of successful RSM journey and contribution to the South Korean industry.”

Some analysts have speculated that Korean manufacture of Geely-based vehicles (possibly CMA-based crossovers under the Lynk & Co brand)  could lead to their export to the US, avoiding US import tariffs imposed on cars shipped directly from China.