08/09/2021 4:19 PM
Clarín.com
Cars
Updated 08/09/2021 4:19 PM
Chinese automaker
Geely
today announced an alliance with France's
Renault
to develop hybrid vehicles in China and South Korea.
In a statement published on its official account of the social network
, the company that owns Volvo and the largest shareholder of Mercedes-Benz, stressed that the cooperation will develop
hybrid cars
with Geely technology and will be sold under the Renault brand.
In addition, both groups will create together models suitable for the South Korean market based on the platforms of Link & Co, a Geely subsidiary, taking advantage of Renault's more than 20 years of experience with Samsung in that country.
The Geely Xingyue L, unveiled in July, is the brand's latest launch in China.
At the moment, no details of the investment or the time frame of the agreement have been made public.
Nor has it been specified what specific models will be developed.
A growing market
According to the IHS Markit consulting firm, 1.2 million electric vehicles were sold in China in 2020 (6.3% of the total), a figure that would increase to 2.2 million in 2021 and
could exceed 6 million in 2025
, when this type of car is expected to account for almost a quarter of sales in the Asian country.
The Hong Kong newspaper
South China Morning Post
pointed out that this pact represents a renewal of Renault's strategy in the Chinese market, since previously the French brand had another partner in the Asian country.
Li Shufu, president and owner of the brand that sells the most cars in China, the largest market in the world.
The French group divested its 50% stake in a joint venture with local manufacturer Dongfeng Motor, in April 2020, after the worst months of the pandemic in the country.
Geely, a real giant
The Zhejiang Geely Holding Group has the Chinese car brand that sells the most units in the Asian country, the largest market on the planet.
But not only that.
Geely owns Volvo, the largest shareholder in Daimler (a group that has Mercedes-Benz, among other companies), owner of LEVC (the manufacturer of London taxis) and the main shareholder of the Proton brand and the Lotus sports car company.
This group is led by Li Shufu, executive member of the Communist Party and delegate of the Chinese People's Political Consultative Conference, considered one of the richest men in China.
Li began his entrepreneurial life by creating his first company when he was 23 years old.
She did it thanks to a loan from her father and named her Geely.
Geely means "lucky" in Chinese, and that's how Li felt when he started his company that
made refrigerators
.
But it did not go well and it was left in the hands of the Chinese government.
Years later, and after continuing his training with an engineering degree, Li created the car brand, with the same name as that refrigerator company, which is the one that sells the most in his country, with more than
1.32 million units
delivered in 2021.
While most Chinese manufacturers were anxious to find some "western" partner who wanted to enter the largest market in the world, the founder of Geely went looking for companies abroad.
And 10 years ago he found Volvo in a near bankruptcy moment.
He bought it and gave him freedom of action to continue developing and researching.
That blank check was a $ 10 billion investment by Geely since the Volvo purchase, which is
worth 10 times more today
than it was a decade ago.
Now start a new adventure with Renault.
Only time will allow us to know how far this new society can go.
Sources: agencies / Renault
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