Renault Korea and Busan City Sign Memorandum of Understanding for Future Car Production Investment
Renault Korea Motors signed a memorandum of understanding (MOU) with Busan City on the 18th regarding investment plans for future vehicle production facilities. The company expects that if investments are made sequentially over three years, including more than 100 billion KRW to establish eco-friendly vehicle production facilities, the total investment will exceed 1.5 trillion KRW.
The signing ceremony was attended by Stephan Deblaize, President of Renault Korea, and Park Hyung-joon, Mayor of Busan, among others. The company announced plans to invest 118 billion KRW over three years for facility replacement costs at the Renault Korea Busan plant to produce future vehicles such as hybrids and electric vehicles. They also plan to hire 200 new employees. Busan City will provide administrative and financial support during the investment process.
Stefan Deblaise, President of Renault Korea Motors (right in the photo), and Park Hyung-jun, Mayor of Busan, are taking a commemorative photo after signing a memorandum of understanding for investment at Busan City Hall on the 18th. [Photo by Busan City]
President Deblaize stated, "We plan to invest 700 billion KRW in the Aurora 1 and 2 projects, which are advanced hybrid models currently in preparation," adding, "If the development and production of next-generation electric vehicle models are confirmed, total investments are expected to exceed 1.5 trillion KRW by 2027."
The company anticipates that the economic effects of this investment will include a direct production inducement effect of 12 trillion KRW, an indirect effect of 30 trillion KRW, and employment of approximately 90,000 people. Previously, Renault Korea, Busan City, and local institutions signed a public-private-academic cooperation agreement to establish an ecosystem for the future vehicle industry.
In November last year, Pavlis Kamboliv (second from the right in the photo), CEO of the Renault brand, visited South Korea and inspected the progress of the Aurora Project at the Renault Korea Busan plant. [Photo by Renault Korea Motors]
The first future vehicle project by Renault Korea, scheduled to be launched in the second half of this year, is the development code-named Aurora 1, a hybrid mid-size sport utility vehicle (SUV). It is a completely new model, not a successor to an existing one.
Renault Korea has been selected as one of five global hubs targeting markets outside Europe under Renault Group’s ‘Renault Brand International Game Plan’ strategy. It is responsible for developing and producing high-end mid-size and large-size vehicles for Renault Group. Following a partnership with Polestar, a subsidiary of China’s Geely Automobile, electric vehicle Polestar 4 will also be produced at the Busan plant starting in the second half of 2025.
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