New evidence of the honeymoon between Renault and Geely. On Thursday night, the diamond brand announced that the factory of its subsidiary in South Korea, 34% owned by Geely, will be dedicated to the production of electric cars for Polestar, a brand also controlled by the Chinese group, from 2025: the Polestar 4. .
Unveiled at the Beijing Motor Show in June, the SUV is, as its name suggests, the fourth model from the all-electric premium brand, jointly owned by Geely and Volvo.
The strategic choice of locating production in Busan offers Polestar the opportunity to target the South Korean market, but especially the American one, avoiding the 27.5% customs duties imposed on the Polestar 2 manufactured in China. The Polestar 4, produced in South Korea, will benefit from the free trade agreement between Seoul and Washington. In addition, the Renault Korea Motors plant in Busan, with direct access to the seaport, reinforces the competitive position of the project.
Export center
This agreement is part of Renault’s global strategy to make Busan an export center for its large SUVs in the D and E segments. Currently, the plant guarantees the production of the Arkana, contributing to Renault’s reestablishment in the family vehicle category in Europe.
The experience gained in the production of hybrid models at the Busan factory takes on a new dimension with the assembly of the Polestar 4, becoming the first 100% electric car produced locally. This experience should also benefit Alpine in the near future, since the French group’s sports brand plans to use the Geely platform and the Busan plant for the production of two models for the American and Asian markets.
Source: BFM TV
