Renault Reveals New Investment for South Korean Affiliate

SEOUL November 30, 2004; The AP reported that French automaker Renault S.A. said Tuesday that it will invest 600 billion won ($571 million; euro431 million) in its South Korean affiliate over the next three years.

The investment will allow Renault Samsung Motors Corp. to produce new gasoline engines jointly developed with Nissan Motor Co., said Renault chairman Louis Schweitzer.

Renault Samsung Motors Corp. has a plant in Busan, a port city on South Korea's southeast coast.

Renault also plans to produce sport utility vehicles in the Busan plant as early as 2007 under Renault and Renault Samsung brands, Schweitzer said.

The official said Renault's new investments will help "develop Renault Samsung Motors as its hub in Asia," indicating that the French auto giant will use its South Korean arm to expand in Asia, including the fast growing Chinese auto market.

Schweitzer made the comments during a news conference in Seoul for the launch of the new Renault Samsung luxury sedan SM7. The car will hit the local market in December.

In 2000, Renault took a controlling stake in the former automotive unit of South Korea's Samsung Group.