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Renault Korea signs memorandum of understanding with Busan City to invest in future vehicle production

byKi-beom Kim, Editor-in-Chief
19 March 2024
Categories : News
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Renault Korea signs memorandum of understanding with Busan City to invest in future vehicle production
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Renault Korea Motors (Renault Korea) signed an investment memorandum of understanding with the city of Busan at the Busan City Hall on 18 November, outlining plans to invest in future vehicle production facilities at its Busan plant.

The signing ceremony of the investment memorandum of understanding between Renault Korea and the city of Busan took place in the presence of Renault Korea President Stephane de Vlez and Busan Mayor Park Hyung-joon. On this day, Renault Korea announced plans to invest KRW 118 billion in replacing equipment for the production of future vehicles such as hybrid and electric vehicles at its Busan plant over the next three years and hire 200 new workers. The city of Busan also pledged administrative and financial support to ensure that Renault Korea's investment process for future vehicle production facilities goes smoothly.

"Renault Korea plans to invest KRW 700 billion in the Aurora 1 and 2 projects, which are being prepared as advanced hybrid models," said Stéphane de Vlez, President of Renault Korea. "After the Aurora 1 and 2 projects, the development and production of the next-generation electric vehicle model is confirmed, a total investment of more than KRW 1.5 trillion is expected to be made by 2027," he said, and asked for the full support of Busan City to realise this. The economic impact of this is analysed as KRW 12 trillion in direct production effects, KRW 30 trillion in indirect production effects, and 90,000 indirect employment effects.

Renault Korea's first future vehicle project, tentatively codenamed Aurora 1, will be a hybrid mid-size SUV that will be launched later this year and will be a new model rather than a successor to Renault Korea's existing vehicles. In line with the Renault Brand International Game Plan strategy, Renault Korea has also been selected as one of five global hubs to develop and produce high-end midsize and mid-size vehicles for the Group's global markets outside Europe. From the second half of 2025, the Busan plant will also produce the Polestar 4 for Swedish electric vehicle brand Polestar.

In May last year, Renault Korea signed a public-private partnership agreement with the city of Busan and local organisations to build an ecosystem for the future vehicle industry in Busan. Through the public-private partnership, Renault Korea agreed to establish an 'eco-cluster centre' at its Busan plant, conduct collaborative projects with local universities, research institutes, and auto parts companies, and actively engage in efforts to promote regional coexistence and recruit local talent.

Article roadtesting editorial (dhseo1208@gmail.com)

Photo Renault Korea

Tags: RenaultRenaultRenault KoreaRenault Korea Motors오로라프로젝트
Ki-beom Kim, Editor-in-Chief

Ki-beom Kim, Editor-in-Chief

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Company name: Roadtest | Registration number: SeoulA02756
| Date: 31 July 2013 | Title: Road Test | Publisher-Editor: Ki-Bum Kim | Address: 626/704, 226, Seoun-ro, Seocho-gu, Seoul, Korea
| Tel: (02)533-7477 | Youth Protection Officer: Ki-Bum Kim

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