Japanese vehicles to be assembled in Korea for first time


Renault-Nissan Alliance chairman & CEO Carlos Ghosn will make public the auto giant’s strategy to roll out Nissan models at Renault’s Korean unit at a news conference, slated for Friday, sources in Seoul said on Thursday.

This will mark the first time that Seoul-based Renault Samsung Motors, whose parent group is Paris-based Renault, takes on production of Japan-based Nissan cars.

“Apart from Renault Samsung, no Japanese car model has been produced in a Korean factory,” an automotive industry official said.

The only other case was when Renault Samsung benchmarked an assembly platform of Nissan several years ago ― not for Nissan models, but for Renault models, he added.

As GM Korea has been producing some of the Chevrolet series in the local market, Korea is set to reach production capacity for both U.S. and Japan-based vehicles.

While Renault Samsung’s manufacturing plant in Busan will be in charge of some Nissan sedans and sport utility vehicles, company executives said that “details will be released on Friday.”

As Renault Samsung has been suffering lackluster sales performance, company executives are pinning hopes on the coming Nissan models to revitalize the automaker’s competition with Korean brands ― Hyundai Motor and Kia Motors.

Renault-Nissan Alliance, which rolls out more than one in 10 cars worldwide, will also benefit from the group’s business policy involving the Busan plant.

A task for the global auto alliance is to expand its annual production capacity. The supply shortage of Renault-Nissan vehicles in some countries has hampered its global market share.

Meanwhile, Renault and its Korean unit are striving especially hard to expand its presence in China, one the world’s two largest automobile markets.

Renault Samsung recently tapped the larger sedan segment in China. It unveiled the All-New SM7, dubbed Talisman, during the 2012 Beijing International Automotive Exhibition, which was held last April.

This marked the first time that the SM7 has been exported to China. The company had been selling three models: the SM3, SM5 and QM5.

Market observers predict automobile sales in China will reach 20 million units this year.

In Korea, Renault Samsung is considering pushing ahead with development of eco-friendly vehicles.

The company plans to introduce the all-electric SM3 in 2013, which is to become the country’s first mass produced zero-emission car.

Dubbed the “quick-drop battery exchange system,” the electric SM3 will travel up to 160 kilometers on a 250 kg lithium-ion battery that can be replaced through a fully automated battery station in less than 90 seconds.

It is the first major project of Renault Samsung chief executive Francois Provost after he was named head of the French group’s Korean unit last September.

Referencing his experience from the group’s Russian unit as chief of operations, Provost expressed confidence in his team’s ability to meet goals set for electric vehicles as they compete with Kia’s EV Ray also due for mass production in 2013.

By Kim Yon-se (kys@heraldcorp.com)