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Reuters

Renault’s chief executive Luca De Meo toured a South Korean factory run with China’s Geely Automobile on Tuesday, as he pitched for sweeping restructuring of an alliance that would allow the French carmaker to focus on electric cars.
Renault and Nissan said on Monday they were in talks about a reset in their partnership that could include the Japanese carmaker investing in a new electric vehicle (EV) venture Renault plans to launch.
Separately, Geely, which owns Volvo Cars and a 9.7 per cent stake in Daimler, has been talking to Renault about taking a significant and potentially controlling stake in the combustion-engine business that Renault is also looking to spin off, people with knowledge of those talks said.
In May, the French carmaker sold 34 per cent of its South Korean subsidiary, centred on a factory in Busan, to Geely. The two carmakers announced plans to develop and build hybrid vehicles there.

De Meo’s visit to South Korea was the first time he has visited the factory since bringing in Geely as a partner, and it comes with Renault facing an initial deadline of early November to report on its progress in launching its EV unit.
De Meo has said Renault needs new partnerships because of the scale of the investment needed to shift toward battery-powered cars and charging.

The Renault CEO was scheduled to speak to reporters in Seoul on Tuesday evening, his first public appearance since news broke of the talks with Nissan.
In exchange for its investment in Renault’s EV unit, Nissan has asked Renault to take steps to sell down its 43 per cent stake in Nissan, people with knowledge of the talks have said.
Taken together, the two steps would secure investment for Renault’s new EV unit, code-named “Ampere,” and address a long-running source of tension for Nissan under Renault’s control.

Renault and Nissan declined to comment beyond a statement on Monday saying they were in “trustful discussions” that included a potential Nissan investment in the Renault EV venture and other unspecified “structural improvements” in their tie-up.
Nissan has a 15 per cent stake in Renault, as does the French government, but the Japanese carmaker does not have voting rights.
The French dominance of the alliance has long been a point of contention for Nissan, which wants Renault to cut its stake to 15 per cent to draw level with its own holding in Renault, a person with knowledge of the discussions told Reuters.
Nissan would also have to sign off on the plan for Geely to take a large stake in Renault’s gas-engine business, code-named “Horse.” Volvo and Geely created a joint-venture under the name Aurobay to shift their own combustion-engine business into a new stand-alone business. Nissan has not offered that approval, one person with knowledge of the talks said.

De Meo was in Japan over the weekend for a round of talks with Nissan CEO Makoto Uchida, the first time the two had met since discussions on the deal began, people with knowledge of the talks said.
Mitsubishi Motors, also a partner in the alliance, is also moving toward taking a single digits percentage stake in Renault’s EV unit, people with knowledge of that element of the talks said.
Negotiations on the terms of a deal are continuing on a working-level although it remains unclear if an agreement – which would require board approval by all the parties – can be reached by early November, when Renault is scheduled to give an update on its new EV unit.
Other carmakers, including General Motors, have faced investor calls to split their more highly valued EV assets into a separate company but have concluded they needed the revenue from existing models to make the transition to an all-electric future.
Shares in Nissan were down 2.25 per cent in late afternoon trade on Tuesday. Renault closed up 2.4 per cent on Monday.


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Automotive industry

Renault CEO tours South Korea unit, reigniting talk that it may sell petrol-guzzling business to Geely

A view of South Korea’s Samsung Motors on April 27, 2000 before it was sold to Renault to become Renault South Korea. Renault sold a third of the unit to Geely in May 2022. Photo: AP

Renault’s chief executive Luca de Meo spoke during the presentation of the Scenic Vision, a prototype hydrogen fuel cell-powered sports utility vehicle (SUV) in Paris on May 19, 2022. Photo: Reuters.

Renault’s Kadjar model on the assembly line at Dongfeng Renault in Wuhan city in central China’s Hubei province on 10 October 2016. Photo: Agence France-Presse

The signboards of Nissan Motor and Renault SA at their dealerships in Kawaguchi city of the Saitama prefecture near Tokyo on November 20, 2018. Photo: Kyodo.

An undated photograph of Nissan Motors’ chief executive Makoto Uchida. Photo: Nissan News

Geely to pay US$200 million for a third of Renault Korea as China’s largest private-sector carmaker  sets sights on exporting to the US

A view of South Korea’s Samsung Motors before it was taken over by Renault and turned into Renault Korea Motors on April 28, 2000. Photo: Reuters.

A view of the assembly line of South Korea’s Samsung Motors before it was sold to Renault of France to become Renault Kore Motors on April 27, 2000. Photo: AP

A Zeekr 001 car is on display at Zhejiang Geely Holding’s Zeekr Intelligent Factory in Hangzhou Bay on 15 April 2021.  Photo: Daniel Ren

China EV market: Renault eyes comeback with Geely tie-up after exiting pandemic-hit Wuhan venture

An October 2018 file photo showing one of the automatic welding lines at Geely’s manufacturing base in Ningbo in eastern Zhejiang province. Photo: Xinhua

Li Shufu, chairman of Zhejiang Geely Holding Group Co., listens during a Bloomberg Television interview on the sidelines of the 13th National People's Congress (NPC) in Beijing, China, on Thursday, March 8, 2018. Collaboration isn't a precondition for Geely founder Li to acquire a stake in Daimler AG because the Chinese billionaire sees the German luxury-car maker as a top investment -- even without synergies with his own automaking group. Photographer: Qilai Shen/Bloomberg

Vehicles travel along Chang'an Avenue in Beijing, China, on Saturday, March 6, 2021. China, the world's biggest car market, aims to boost auto sales and add more charging facilities for electric vehicles this year. Photographer: Qilai Shen/Bloomberg

Renault venture with carmaker China Brilliance stops paying salaries, expected to undergo liquidation

A Renault hybrid car is displayed at the Brussels Motor Show in this file photo from January 2020. The French carmaker is making renewed efforts to gain a foothold in China after signing an agreement with Geely to share resources and technologies and focus on making hybrid vehicles for Asian markets. Photo: Reuters

China’s Envision Group to build US$2.4 billion battery plant for Renault in France

A Renault Scenic on the assembly line at the Renault assembly plant in Douai, northern France. Photo: Reuters

French President Emmanuel Macron talks to journalists during an EU summit at the European Council building in Brussels, Thursday, June 24, 2021. At their summit in Brussels, EU leaders are set to take stock of coronavirus recovery plans, study ways to improve relations with Russia and Turkey, and insist on the need to develop migration partners with the countries of northern Africa, but a heated exchange over a new LGBT bill in Hungary is also likely. (John Thys, Pool Photo via AP)

Renault exits Wuhan car venture as months of lockdown to contain coronavirus puts it beyond any hope of catching up in China

A worker putting the final shine on a Kadjar SUV at a Dongfeng Renault manufacturing plant in Wuhan in central China's Hubei province. Photo: Chinatopix via AP

FILE PHOTO: A Renault Clio E-Tech Hybrid car is seen at Brussels Motor Show, Belgium, January 9, 2020. REUTERS/Francois Lenoir/File Photo

graphic for online Charts for online Major carmakers' sales to capacity ratio Dongfeng Honda Dongfeng Nissan FAW Toyota FAW VW SAIC GM SAIC VW GAC Trumpchi Chang'an Ford Geely Great Wall Motors Chery Automobile BAIC Hyundai BYD Dongfeng Yueda Kia Dongfeng Peugeot Citroen Changan Automobile Dongfeng Renault Source: Selecar.cn Sales (million units) Annual capacity (million units) Sales/ capacity SCMP

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Renault sold 34 per cent of its South Korean unit to Geely
The unit is centred on a factory in Busan



Geely Automobile has been talking to Renault about potentially buying a controlling stake in the combustion-engine business that Renault is looking to spin off, according to people familiar with the matter.


Electric & new energy vehicles

Geely

Nissan

Renault

Renault CEO tours South Korea unit, reigniting talk that it may sell petrol-guzzling business to Geely

Renault sold 34 per cent of its South Korean unit to Geely The unit is centred on a factory in Busan

Renault sold 34 per cent of its South Korean unit to Geely

The unit is centred on a factory in Busan