Renault, Geely, and Polestar Agree on New SUV Production in Korea
Exports to Domestic and North American Markets Starting Second Half of 2025
Collaboration Among Parent Companies from Vehicle Development to Production
Renault Korea Motors and electric vehicle manufacturer Polestar announced on the 10th that they will start producing electric vehicles at Renault's Busan plant from the second half of 2025. Cooperation between the parent companies has expanded from the vehicle development stage to production.
The electric vehicle to be produced is the mid-size sport utility vehicle (SUV) Polestar 4, a model that recently began production at Geely's Hangzhou plant, China's largest private automaker. Polestar is an electric vehicle-only manufacturer jointly established by Geely and Volvo, a Swedish brand under Geely. The vehicles will be made at the Busan plant and sold domestically in South Korea or exported to the North American market. If produced in China, exporting to North America would be difficult, but the Busan plant benefits from better export conditions such as free trade agreements (FTA).
Polestar 4, produced exclusively at the Hangzhou Bay factory in China's geography [Photo by Polestar Korea]
The Renault Korea Busan plant employs about 2,000 people and is located near a port, facilitating exports. Among Renault's global plants, it is also known for its high quality. Renault Korea plans to launch its own hybrid model developed using the Volvo platform next year. With the addition of this electric vehicle, production volume can be increased.
The Busan plant has a maximum annual capacity of 300,000 units but has not exceeded 200,000 units per year in the past three years. Production increased somewhat last year with the hybrid XM3. The specific production volume for the upcoming Polestar electric vehicle has not yet been disclosed.
As cooperation between Renault and Geely expands, the plant in South Korea appears to be benefiting. Renault, a company based in Europe, has selected the Busan plant as a production base for vehicles to be launched in Asia and North America. Polestar has so far manufactured vehicles at plants operated by Geely or Volvo worldwide. Rather than having its own facilities, it operates a lightweight asset model by utilizing infrastructure owned by partners or shareholders.
Geely became the second-largest shareholder by acquiring a 34% stake in Renault Korea last year. Since then, they have expanded cooperation comprehensively from the development stage, including sharing vehicle platforms. The new car Renault Korea will launch next year (Aurora project) was developed using a platform created by Volvo and Geely.
Stefan Deblaise, President of Renault Korea, said, "The Polestar 4 is the first SUV electric vehicle produced at the Busan plant and symbolizes the company's future vision," adding, "With the support of shareholders Renault Group and Geely Group, we will create more business opportunities."
Thomas Ingenlath, CEO of Polestar, said, "We are pleased to be part of the stage diversifying vehicle production bases with Renault Korea and Geely Group," adding, "Starting with Polestar 3 production next year in Chengdu, China, and South Carolina, USA, and continuing to Busan the following year, we will achieve our goals based on five production bases in three countries."
Polestar 4, produced exclusively at the Hangzhou Bay factory in China's geography [Photo by Polestar Korea]
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